Core Laboratories is an oil-services company that helps oil and gas companies better understand how to improve production levels and economics with core and reservoir analysis. Additionally, the company sells a number of products helping its customers to maximize production levels from their oil and gas assets. The company operates in more than 50 countries and has more than 5,000 employees.
Recommendation (Jan 2021)
An outstanding business, undervalued at $31.68 per share.
$31.68 per share implies that revenue will grow at 2.2% CAGR for the next 12 years. This is pessimistic for this business.
If we assume that EPS will grow between 12-18% CAGR for 10 years and that CLB will trade at a PE multiple of 33x in 2030, then the implied Investor Return would be between 11-17%.
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