LNG Energy Group Valuation

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

LNGE (CA$0.15) is trading below our estimate of [[fair value]] (CA$3.17)

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

Below Fair Value: LNGE (CA$0.15) is trading below our estimate of fair value (CA$3.17)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LNGE. This is calculated by dividing LNGE's market cap by their current revenue.
What is LNGE's PS Ratio?
PS Ratio	0.5x
Sales	US$33.07m
Market Cap	US$15.57m

LNGE 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	2.2x
Enterprise Value/EBITDA	147.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for LNGE 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	6.1x
XOP Canadian Overseas Petroleum	0.7x	n/a	CA$18.3m
SOU Southern Energy	0.8x	47.2%	CA$16.5m
RHC Royal Helium	10x	36.3%	CA$16.1m
VRY Petro-Victory Energy	12.7x	n/a	CA$20.0m
LNGE LNG Energy Group	0.5x	32.5%	CA$15.6m

Price-To-Sales vs Peers: LNGE is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (6x).

Price to Sales Ratio vs Industry

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

20 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.9x	1.7%
LNGE LNG Energy Group	0.5x	32.5%	US$15.57m
PKI Parkland	0.2x	2.2%	US$4.15b
SES Secure Energy Services	0.4x	-56.0%	US$2.80b

20 Companies		Estimated Growth	Market Cap
Industry Avg.	1.9x	4.7%
LNGE LNG Energy Group	0.5x	n/a	US$15.57m

No more companies

Price-To-Sales vs Industry: LNGE is good value based on its Price-To-Sales Ratio (0.5x) compared to the Canadian Oil and Gas industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is LNGE'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.

LNGE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	2.5x

Price-To-Sales vs Fair Ratio: LNGE is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).

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.

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