Bannerman Energy Valuation

Q: What is the Fair Price of BMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BMN (A$2.71) is trading below our estimate of [[fair value]] (A$10.37)

Is BMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BMN (A$2.71) is trading below our estimate of fair value (A$10.37)

Significantly Below Fair Value: BMN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BMN?

Key metric: As BMN is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for BMN. This is calculated by dividing BMN's market cap by their current book value.
What is BMN's PB Ratio?
PB Ratio	4.5x
Book	AU$106.70m
Market Cap	AU$496.59m

BMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	-82.3x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does BMN's PB Ratio compare to its peers?

The above table shows the PB ratio for BMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	2.2x
AGE Alligator Energy	2.4x	82.7%	AU$162.7m
PEN Peninsula Energy	0.6x	49.9%	AU$181.7m
MEU Marmota	2.3x	n/a	AU$45.6m
LOT Lotus Resources	3.7x	71.3%	AU$504.3m
BMN Bannerman Energy	4.5x	59.7%	AU$496.6m

Price-To-Book vs Peers: BMN is expensive based on its Price-To-Book Ratio (4.5x) compared to the peer average (2.2x).

Price to Book Ratio vs Industry

How does BMN's PB Ratio compare vs other companies in the AU Oil and Gas Industry?

6 Companies	Price / Book	Estimated Growth	Market Cap
BLU Blue Energy	0.2x	109.7%	US$9.63m
ATS Australis Oil & Gas	0.2x	n/a	US$7.54m
AJQ Armour Energy	0.2x	n/a	US$6.72m
BME Black Mountain Energy	0.07x	n/a	US$2.00m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: BMN is expensive based on its Price-To-Book Ratio (4.5x) compared to the Australian Oil and Gas industry average (1.3x).

Price to Book Ratio vs Fair Ratio

What is BMN's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BMN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	4.5x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate BMN's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BMN forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	AU$2.71	AU$5.87 +116.4%	26.2%	AU$7.40	AU$4.33	n/a	2
Nov ’25	AU$2.97	AU$5.87 +97.5%	26.2%	AU$7.40	AU$4.33	n/a	2
Oct ’25	AU$3.19	AU$5.87 +83.9%	26.2%	AU$7.40	AU$4.33	n/a	2
Sep ’25	AU$2.30	AU$5.87 +155.0%	26.2%	AU$7.40	AU$4.33	n/a	2
Aug ’25	AU$2.99	AU$5.87 +96.2%	26.2%	AU$7.40	AU$4.33	n/a	2
Jun ’25	AU$4.50	AU$6.01 +33.6%	23.1%	AU$7.40	AU$4.62	n/a	2
May ’25	AU$4.17	AU$6.01 +44.1%	23.1%	AU$7.40	AU$4.62	n/a	2
Apr ’25	AU$3.70	AU$5.37 +45.3%	31.0%	AU$7.04	AU$3.71	n/a	2
Mar ’25	AU$2.97	AU$5.31 +78.9%	32.4%	AU$7.04	AU$3.59	n/a	2
Feb ’25	AU$3.50	AU$5.31 +51.8%	32.4%	AU$7.04	AU$3.59	n/a	2
Jan ’25	AU$2.69	AU$3.40 +26.2%	5.7%	AU$3.59	AU$3.20	n/a	2
Dec ’24	AU$2.74	AU$3.40 +23.9%	5.7%	AU$3.59	AU$3.20	n/a	2
Nov ’24	AU$2.79	AU$3.40 +21.7%	5.7%	AU$3.59	AU$3.20	AU$2.97	2
Oct ’24	AU$2.82	AU$3.40 +20.4%	5.7%	AU$3.59	AU$3.20	AU$3.19	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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