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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (40869)	3/26/2005 9:53:58 PM
From: Taikun	Read Replies (2) \| Respond to of 206325

Ed, What do you think of EV/DACF vs ROCE? I came across this paper which showed a divergence between the two. Do you think ROCE is more applicable to mature companies? For example, Peters, the Canadian energy investment bank, uses EV/DACF exclusively petersco.com and this report on NKO.TO nikoresources.com without a single reference to ROCE. The report I found said EV/DACF responded negatively to increases in the oil price and also says they found a divergence between ROCE and EV/DACF. nhh.no Basically, they question whether there is a positive relationship between EV/DACF and ROCE. The question I want to answer is whether one metric is better than others, and the factors that influence the applicability of either. Comments appreciated. D