Tenth Avenue Petroleum Valuation

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

Below Fair Value: TPC (CA$0.08) is trading below our estimate of fair value (CA$0.36)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TPC. This is calculated by dividing TPC's market cap by their current revenue.
What is TPC's PS Ratio?
PS Ratio	1x
Sales	CA$3.23m
Market Cap	CA$3.20m

TPC 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	0.9x
Enterprise Value/EBITDA	31.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TPC 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	5x
TTG Trans Canada Gold	3.6x	n/a	CA$2.8m
WCE WesCan Energy	1.6x	n/a	CA$4.7m
EFV EF EnergyFunders Ventures	3.2x	n/a	CA$2.7m
ATI Altai Resources	11.5x	n/a	CA$4.0m
TPC Tenth Avenue Petroleum	1x	n/a	CA$3.2m

Price-To-Sales vs Peers: TPC is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

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

18 Companies	Price / Sales	Estimated Growth	Market Cap
PKI Parkland	0.2x	2.2%	US$4.22b
SES Secure Energy Services	0.4x	-56.0%	US$2.82b
GEI Gibson Energy	0.3x	-5.8%	US$2.72b
FEC Frontera Energy	0.4x	n/a	US$460.05m

18 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TPC is good value based on its Price-To-Sales Ratio (1x) compared to the Canadian Oil and Gas industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is TPC'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.

TPC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TPC's Price-To-Sales 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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