We’ve recently updated our valuation analysis.

Norwest Energy Valuation

Is NWE 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book 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 NWE?

Other financial metrics that can be useful for relative valuation.

NWE 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/Revenue1983x
Enterprise Value/EBITDA-245x
PEG Ration/a

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for NWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average3x
HZN Horizon Oil
1.8xn/aAU$248.2m
88E 88 Energy
2xn/aAU$237.5m
STX Strike Energy
7.3x100.3%AU$849.3m
CVN Carnarvon Energy
1x58.9%AU$261.0m
NWE Norwest Energy
17.2x63.2%AU$476.7m

Price-To-Book vs Peers: NWE is expensive based on its Price-To-Book Ratio (17.2x) compared to the peer average (3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-6.7%
n/an/an/a

Price-To-Book vs Industry: NWE is expensive based on its Price-To-Book Ratio (17.2x) compared to the Australian Oil and Gas industry average (2x)


Price to Book Ratio vs Fair Ratio

What is NWE'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.

NWE PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio17.2x
Fair PB Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: NWE (A$0.07) is trading below our estimate of fair value (A$0.15)

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


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 NWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.071
AU$0.06
-15.5%
16.7%AU$0.07AU$0.05n/a2
Jan ’24AU$0.058
AU$0.055
-5.2%
9.1%AU$0.06AU$0.05n/a2
Dec ’23AU$0.047
AU$0.055
+17.0%
9.1%AU$0.06AU$0.05n/a2
Nov ’23AU$0.049
AU$0.06
+22.4%
0%AU$0.06AU$0.06n/a1
Oct ’23AU$0.045
AU$0.05
+11.1%
0%AU$0.05AU$0.05n/a1
Sep ’23AU$0.048
AU$0.05
+4.2%
0%AU$0.05AU$0.05n/a1
Aug ’23AU$0.041
AU$0.05
+22.0%
0%AU$0.05AU$0.05n/a1
Jul ’23AU$0.044
AU$0.05
+13.6%
0%AU$0.05AU$0.05n/a1
Jun ’23AU$0.035
AU$0.05
+42.9%
0%AU$0.05AU$0.05n/a1
May ’23AU$0.034
AU$0.05
+47.1%
0%AU$0.05AU$0.05n/a1
Apr ’23AU$0.038
AU$0.05
+31.6%
0%AU$0.05AU$0.05n/a1

Analyst Forecast: Target price is lower than the current share price.


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