Western Energy Services Valuation
Is WRG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
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 WRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WRG (CA$2.69) is trading below our estimate of fair value (CA$4.3)
Significantly Below Fair Value: WRG is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WRG?
Key metric: As WRG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is WRG's PS Ratio? | |
|---|---|
| PS Ratio | 0.4x |
| Sales | CA$219.61m |
| Market Cap | CA$91.04m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.9x |
| Enterprise Value/EBITDA | 4.4x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does WRG's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 0.5x | ||
AKT.A AKITA Drilling | 0.4x | 14.6% | CA$65.4m |
SDI Stampede Drilling | 0.5x | 5.5% | CA$42.4m |
PHX PHX Energy Services | 0.7x | 5.4% | CA$452.7m |
ESI Ensign Energy Services | 0.3x | 1.6% | CA$564.9m |
WRG Western Energy Services | 0.4x | 3.7% | CA$91.0m |
Price-To-Sales vs Peers: WRG is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.5x).
Price to Sales Ratio vs Industry
How does WRG's PS Ratio compare vs other companies in the CA Energy Services Industry?
Price-To-Sales vs Industry: WRG is good value based on its Price-To-Sales Ratio (0.4x) compared to the Canadian Energy Services industry average (0.6x).
Price to Sales Ratio vs Fair Ratio
What is WRG'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.4x |
| Fair PS Ratio | 0.5x |
Price-To-Sales vs Fair Ratio: WRG is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).
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.
Discover undervalued companies
Rubellite Energy
CA$214.7m
Rubellite Energy Inc., an energy company, engages in the exploration, development, and production of heavy crude oil from the Clearwater Formation in Eastern Alberta.
RBY
CA$2.31
7D
6.0%
1Y
-2.1%
Ovintiv
US$11.9b
Explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada.
OVV
US$63.99
7D
2.6%
1Y
6.9%
Precision Drilling
CA$1.3b
A drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East.
PD
CA$90.34
7D
3.1%
1Y
16.8%