Empire Energy Group Limited

ASX:EEG Stock Report

Market Cap: AU$188.2m

Empire Energy Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate EEG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate EEG's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As EEG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for EEG. This is calculated by dividing EEG's market cap by their current revenue.
What is EEG's PS Ratio?
PS Ratio33.4x
SalesAU$6.09m
Market CapAU$188.20m

Price to Sales Ratio vs Peers

How does EEG's PS Ratio compare to its peers?

The above table shows the PS ratio for EEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
HZN Horizon Oil
1.8x4.8%AU$301.0m
AEL Amplitude Energy
2.1x13.0%AU$448.8m
OEL Otto Energy
1.8xn/aAU$52.7m
ECH Echelon Resources
1xn/aAU$82.9m
EEG Empire Energy Group
33.4x68.5%AU$203.5m

Price-To-Sales vs Peers: EEG is expensive based on its Price-To-Sales Ratio (33.4x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

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

36 CompaniesPrice / SalesEstimated GrowthMarket Cap
WDS Woodside Energy Group
2.4x1.5%US$29.54b
STO Santos
2.5x8.0%US$14.26b
YAL Yancoal Australia
1.2x0.4%US$5.46b
ALD Ampol
0.2x-1.6%US$4.38b
EEG 33.4xIndustry Avg. 4.8xNo. of Companies36PS020406080100+
36 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: EEG is expensive based on its Price-To-Sales Ratio (33.4x) compared to the Australian Oil and Gas industry average (4.8x).

Price to Sales Ratio vs Fair Ratio

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

EEG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio33.4x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: EEG is expensive based on its Price-To-Sales Ratio (33.4x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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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