SouthGobi Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: SGQ (CA$0.68) is trading below our estimate of fair value (CA$18.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SGQ. This is calculated by dividing SGQ's market cap by their current earnings.
What is SGQ's PE Ratio?
PE Ratio	3.2x
Earnings	US$44.54m
Market Cap	US$144.33m

SGQ 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	0.8x
Enterprise Value/EBITDA	2.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SGQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.2x
URC Uranium Royalty	51.8x	31.4%	CA$448.6m
MGA Mega Uranium	25.8x	n/a	CA$146.5m
AEC Anfield Energy	11.8x	n/a	CA$124.0m
LCX Lycos Energy	11.5x	n/a	CA$157.1m
SGQ SouthGobi Resources	3.2x	n/a	CA$201.7m

Price-To-Earnings vs Peers: SGQ is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

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

7 Companies	Price / Earnings	Estimated Growth	Market Cap
HAM Highwood Asset Management	1.2x	-43.9%	US$64.52m
ALPS.U Alpine Summit Energy Partners	1x	n/a	US$24.02m
KUB.H Carcetti Capital	0.7x	n/a	US$5.82m
GCOM Green Shift Commodities	1.4x	n/a	US$4.43m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SGQ is good value based on its Price-To-Earnings Ratio (3.2x) compared to the Canadian Oil and Gas industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is SGQ'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.

SGQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SGQ's Price-To-Earnings 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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