Mustang Energy Valuation

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

MEC (CA$0.34) is trading below our estimate of [[fair value]] (CA$0.83)

Is MEC 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MEC (CA$0.34) is trading below our estimate of fair value (CA$0.83)

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

Key Valuation Metric

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

Key metric: As MEC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MEC. This is calculated by dividing MEC's market cap by their current earnings.
What is MEC's PE Ratio?
PE Ratio	23.6x
Earnings	CA$681.89k
Market Cap	CA$15.38m

MEC 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	10.5x
CAKE Radio Fuels Energy	4x	n/a	CA$16.5m
GCOM Green Shift Commodities	1.4x	n/a	CA$6.9m
AEC Anfield Energy	12.2x	n/a	CA$118.7m
MGA Mega Uranium	24.5x	n/a	CA$139.1m
MEC Mustang Energy	23.6x	n/a	CA$15.4m

Price-To-Earnings vs Peers: MEC is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

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

7 Companies	Price / Earnings	Estimated Growth	Market Cap
HAM Highwood Asset Management	1.3x	-43.9%	US$65.03m
ALPS.U Alpine Summit Energy Partners	1x	n/a	US$24.02m
KUB.H Carcetti Capital	0.7x	n/a	US$5.82m
GCOM Green Shift Commodities	1.4x	n/a	US$4.93m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MEC is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the Canadian Oil and Gas industry average (10.7x).

Price to Earnings Ratio vs Fair Ratio

What is MEC'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.

MEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MEC's Price-To-Earnings 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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