Someone asked me about the Intrinsic value of Riverstone Holdings Ltd. My previous post stated 0.5, but that was done in Jan 2015. Thought I do an update on that here (see below). Intrinsic Value First let’s look at the estimated 5 years earning growth which is 14.90%. Let’s assume a 20% discount, the figure will be 11.92%. Given EPS and a PE ratio, stock price can easily be calculated for any company. Using the below formula. F = P(1+R)^N where:

• F = the future EPS
• P = the starting (present) EPS (0.08)
• R = compound growth rate (11.92)
• N = number of years in the future (5)

Estimated future EPS: 0.14 I will be estimating the future PE of Riverstone Ltd to be 9.5 (See data from Morningstar below) Average of the PE from 2006 to 2014. Future Stock Price P=EPSxPE

• P = future stock price
• EPS ...

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