Energy Resources of Australia Ltd

ASX:ERA Stock Report

Market Cap: AU$44.3m

Energy Resources of Australia Valuation

Is ERA 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-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 ERA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ERA. This is calculated by dividing ERA's market cap by their current revenue.
What is ERA's PS Ratio?
PS Ratio1.2x
SalesAU$38.27m
Market CapAU$44.30m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ERA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.6x
TER TerraCom
0.6xn/aAU$176.2m
MCM MC Mining
1.1xn/aAU$59.5m
PEN Peninsula Energy
9.6x38.4%AU$181.7m
EDE Eden Innovations
3.1xn/aAU$6.2m
ERA Energy Resources of Australia
1.2xn/aAU$44.3m

Price-To-Sales vs Peers: ERA is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (3.6x).


Price to Sales Ratio vs Industry

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

37 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.4.6x6.7%
ERA Energy Resources of Australia
1.2xn/aUS$28.80m
WDS Woodside Energy Group
2.4x1.5%US$30.11b
STO Santos
2.5x8.1%US$14.30b
ERA 1.2xIndustry Avg. 4.6xNo. of Companies37PS020406080100+
37 CompaniesEstimated GrowthMarket Cap
Industry Avg.4.6x7.1%
ERA Energy Resources of Australia
1.2xn/aUS$28.80m
No more companies

Price-To-Sales vs Industry: ERA is good value based on its Price-To-Sales Ratio (1.2x) compared to the Australian Oil and Gas industry average (4.6x).


Price to Sales Ratio vs Fair Ratio

What is ERA'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.

ERA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ERA's Price-To-Sales 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?

Analyst Forecast: Insufficient data to show price forecast.


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