Central Petroleum Limited

ASX:CTP Stock Report

Market Cap: AU$39.5m

Central Petroleum Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CTP (A$0.05) is trading below our estimate of fair value (A$2.24)

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

Key Valuation Metric

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

Key metric: As CTP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CTP. This is calculated by dividing CTP's market cap by their current earnings.
What is CTP's PE Ratio?
PE Ratio3.1x
EarningsAU$12.42m
Market CapAU$39.50m

Price to Earnings Ratio vs Peers

How does CTP's PE Ratio compare to its peers?

The above table shows the PE ratio for CTP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.7x
FAR FAR
0.7xn/aAU$44.8m
MAY Melbana Energy
28.9xn/aAU$101.1m
CUE Cue Energy Resources
4.4xn/aAU$63.6m
JPR Jupiter Energy
24.8xn/aAU$45.9m
CTP Central Petroleum
3.1x25.1%AU$39.5m

Price-To-Earnings vs Peers: CTP is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FAR FAR
0.7xn/aUS$29.14m
IKW Ikwezi Mining
1.7xn/aUS$12.55m
XST Xstate Resources
0.7xn/aUS$1.89m
No more companies available in this PE range
CTP 3.1xIndustry Avg. 13.0xNo. of Companies5PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTP is good value based on its Price-To-Earnings Ratio (3.1x) compared to the Australian Oil and Gas industry average (13x).

Price to Earnings Ratio vs Fair Ratio

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

CTP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio9.6x

Price-To-Earnings vs Fair Ratio: CTP is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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