I don't quite understand the valuation method 2. I can see that being equal to the value of the "profits" generated by the reserves. If I assume that there is no growth, then the profit = free cash flow. It shows the value of the reserves to the firm. If correct, then shouldn't you deduct the loan, RCUL, and even the deferred tax liabilities to get to what is due to the shareholders. However, you have assumed that the value of the reserves all belongs to the shareholders. What is wrong with my view? < i4value.asia>

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