Advantage Energy Ltd.

TSX:AAV Stock Report

Market Cap: CA$1.6b

Advantage Energy Valuation

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

Below Fair Value: AAV (CA$9.37) is trading below our estimate of fair value (CA$10.8)

Significantly Below Fair Value: AAV is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AAV. This is calculated by dividing AAV's market cap by their current earnings.
What is AAV's PE Ratio?
PE Ratio34.3x
EarningsCA$45.62m
Market CapCA$1.56b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AAV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
PXT Parex Resources
4.1x-36.7%CA$1.5b
IPCO International Petroleum
10.3x8.3%CA$1.9b
BIR Birchcliff Energy
95.3xn/aCA$1.5b
KEL Kelt Exploration
24.6xn/aCA$1.4b
AAV Advantage Energy
34.3x46.1%CA$1.6b

Price-To-Earnings vs Peers: AAV is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (33.6x).

Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.2x-43.9%US$64.52m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.4xn/aUS$4.43m
AAV 34.3xIndustry Avg. 11.4xNo. of Companies13PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AAV is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the Canadian Oil and Gas industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is AAV'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.

AAV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.3x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: AAV is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).

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 AAV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$9.37
CA$13.14
+40.2%
18.7%CA$20.00CA$11.00n/a11
Nov ’25CA$8.75
CA$13.14
+50.1%
18.7%CA$20.00CA$11.00n/a11
Oct ’25CA$9.63
CA$13.55
+40.7%
17.3%CA$20.00CA$11.00n/a11
Sep ’25CA$9.72
CA$13.95
+43.6%
15.0%CA$20.00CA$12.00n/a11
Aug ’25CA$9.55
CA$13.95
+46.1%
15.0%CA$20.00CA$12.00n/a11
Jul ’25CA$10.38
CA$13.95
+34.4%
14.9%CA$20.00CA$12.00n/a11
Jun ’25CA$11.59
CA$13.46
+16.1%
15.2%CA$19.00CA$11.00n/a12
May ’25CA$10.65
CA$13.46
+26.4%
15.2%CA$19.00CA$11.00n/a12
Apr ’25CA$9.97
CA$13.00
+30.4%
13.4%CA$17.00CA$10.50n/a11
Mar ’25CA$10.23
CA$12.48
+22.0%
14.3%CA$16.00CA$9.75n/a11
Feb ’25CA$8.85
CA$12.48
+41.0%
14.8%CA$16.00CA$9.75n/a12
Jan ’25CA$8.53
CA$12.75
+49.5%
17.9%CA$18.00CA$9.50n/a13
Dec ’24CA$9.24
CA$12.77
+38.2%
17.0%CA$18.00CA$9.50n/a14
Nov ’24CA$10.29
CA$12.70
+23.4%
17.4%CA$18.00CA$9.50CA$8.7514
Oct ’24CA$9.27
CA$12.37
+33.4%
16.3%CA$16.00CA$9.50CA$9.6313
Sep ’24CA$9.86
CA$12.10
+22.7%
16.3%CA$16.00CA$9.50CA$9.7214
Aug ’24CA$9.31
CA$12.10
+29.9%
16.3%CA$16.00CA$9.50CA$9.5514
Jul ’24CA$8.65
CA$11.76
+35.9%
16.6%CA$16.00CA$9.50CA$10.3814
Jun ’24CA$7.23
CA$11.94
+65.1%
16.2%CA$16.00CA$9.00CA$11.5914
May ’24CA$7.38
CA$12.08
+63.7%
15.7%CA$16.00CA$9.50CA$10.6514
Apr ’24CA$7.81
CA$12.94
+65.6%
13.7%CA$17.00CA$10.50CA$9.9714
Mar ’24CA$8.19
CA$13.22
+61.4%
14.6%CA$17.00CA$10.50CA$10.2314
Feb ’24CA$7.98
CA$13.72
+71.9%
11.3%CA$17.00CA$11.85CA$8.8514
Jan ’24CA$9.47
CA$14.60
+54.1%
9.3%CA$17.00CA$12.00CA$8.5313
Dec ’23CA$11.72
CA$14.60
+24.5%
9.3%CA$17.00CA$12.00CA$9.2413
Nov ’23CA$10.49
CA$14.60
+39.1%
9.3%CA$17.00CA$12.00CA$10.2913

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.

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