New Stratus Energy Valuation

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

NSE (CA$0.69) is trading below our estimate of [[fair value]] (CA$13.13)

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: NSE (CA$0.69) is trading below our estimate of fair value (CA$13.13)

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

Key Valuation Metric

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

Key metric: As NSE is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for NSE. This is calculated by dividing NSE's market cap by their current book value.
What is NSE's PB Ratio?
PB Ratio	5.1x
Book	CA$18.10m
Market Cap	CA$82.71m

NSE 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	-3.5x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does NSE's PB Ratio compare to its peers?

The above table shows the PB ratio for NSE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	7.7x
OYL CGX Energy	0.8x	n/a	CA$69.4m
EOG Eco (Atlantic) Oil & Gas	1.6x	73.0%	CA$62.9m
ZEFI Zefiro Methane	5.7x	n/a	CA$45.4m
WIL Wilton Resources	22.7x	n/a	CA$44.0m
NSE New Stratus Energy	5.1x	n/a	CA$82.7m

Price-To-Book vs Peers: NSE is good value based on its Price-To-Book Ratio (5.1x) compared to the peer average (7.7x).

Price to Book Ratio vs Industry

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

8 Companies	Price / Book	Estimated Growth	Market Cap
TWM Tidewater Midstream and Infrastructure	0.2x	134.7%	US$70.54m
YGR Yangarra Resources	0.2x	n/a	US$67.58m
LCFS Tidewater Renewables	0.08x	111.9%	US$47.91m
BNG Bengal Energy	0.2x	n/a	US$3.47m

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: NSE is expensive based on its Price-To-Book Ratio (5.1x) compared to the Canadian Oil and Gas industry average (1.2x).

Price to Book Ratio vs Fair Ratio

What is NSE's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NSE PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	5.1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate NSE's Price-To-Book 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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