PetroTal Corp.

TSX:TAL Stock Report

Market Cap: CA$593.2m

PetroTal Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: TAL (CA$0.65) is trading below our estimate of fair value (CA$3.2)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TAL. This is calculated by dividing TAL's market cap by their current earnings.
What is TAL's PE Ratio?
PE Ratio3.8x
EarningsUS$111.74m
Market CapUS$421.00m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.8x
OBE Obsidian Energy
4.9x15.4%CA$576.6m
FEC Frontera Energy
4.6xn/aCA$627.8m
KEC Kiwetinohk Energy
10.1x93.6%CA$660.8m
PIPE Pipestone Energy
3.5xn/aCA$559.4m
TAL PetroTal
3.8x-4.6%CA$593.2m

Price-To-Earnings vs Peers: TAL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (6.5x).

Price to Earnings Ratio vs Industry

How does TAL'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$62.92m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.6xn/aUS$4.89m
TAL 3.8xIndustry Avg. 10.8xNo. of Companies11PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TAL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the Canadian Oil and Gas industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is TAL'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.

TAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.8x
Fair PE Ratio8.4x

Price-To-Earnings vs Fair Ratio: TAL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (8.4x).

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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