We’ve recently updated our valuation analysis.

New Hope Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NHC 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/Revenue1.9x
Enterprise Value/EBITDA3x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

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

NHC PE Ratio vs Peers
The above table shows the PE ratio for NHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.4x
WHC Whitehaven Coal
3.7x-35.2%AU$8.3b
YAL Yancoal Australia
2.7x0.1%AU$8.1b
SMR Stanmore Resources
4.9xn/aAU$2.0b
TER TerraCom
4.4xn/aAU$843.5m
NHC New Hope
4.6x-23.4%AU$5.3b

Price-To-Earnings vs Peers: NHC is expensive based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (4.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: NHC is good value based on its Price-To-Earnings Ratio (4.6x) compared to the Australian Oil and Gas industry average (7.2x)


Price to Earnings Ratio vs Fair Ratio

What is NHC'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.

NHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: NHC is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).


Share Price vs Fair Value

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

Below Fair Value: NHC (A$5.4) is trading above our estimate of fair value (A$4.83)

Significantly Below Fair Value: NHC is trading above our estimate of fair value.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies