High Peak Royalties Valuation

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

HPR (A$0.09) is trading above our estimate of [[fair value]] (A$0.02)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: HPR (A$0.09) is trading above our estimate of fair value (A$0.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HPR. This is calculated by dividing HPR's market cap by their current revenue.
What is HPR's PS Ratio?
PS Ratio	16.1x
Sales	AU$1.10m
Market Cap	AU$17.69m

HPR 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/Revenue	15.9x
Enterprise Value/EBITDA	61x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HPR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	16.3x
BAS Bass Oil	1.8x	n/a	AU$17.4m
PGY Pilot Energy	43x	n/a	AU$24.6m
ADX ADX Energy	2.3x	n/a	AU$25.8m
FZR Fitzroy River	17.9x	n/a	AU$13.0m
HPR High Peak Royalties	16.1x	n/a	AU$17.7m

Price-To-Sales vs Peers: HPR is good value based on its Price-To-Sales Ratio (16.1x) compared to the peer average (16.3x).

Price to Sales Ratio vs Industry

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

35 Companies	Price / Sales	Estimated Growth	Market Cap
WDS Woodside Energy Group	2.4x	1.5%	US$30.07b
STO Santos	2.5x	6.9%	US$13.98b
YAL Yancoal Australia	1.2x	0.8%	US$5.30b
ALD Ampol	0.2x	-1.6%	US$4.59b

35 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HPR is expensive based on its Price-To-Sales Ratio (16.1x) compared to the Australian Oil and Gas industry average (5.3x).

Price to Sales Ratio vs Fair Ratio

What is HPR'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.

HPR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	16.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HPR'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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