Archrock, Inc.

DB:54E Stock Report

Market Cap: €4.4b

Archrock Valuation

Is 54E 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-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 54E when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 54E (€24.4) is trading below our estimate of fair value (€57.24)

Significantly Below Fair Value: 54E is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 54E?

Key metric: As 54E is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 54E. This is calculated by dividing 54E's market cap by their current earnings.
What is 54E's PE Ratio?
PE Ratio31.6x
EarningsUS$143.41m
Market CapUS$4.53b

Price to Earnings Ratio vs Peers

How does 54E's PE Ratio compare to its peers?

The above table shows the PE ratio for 54E vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.6x
CE2 CropEnergies
15.3x-7.5%€1.0b
CE2 CropEnergies
82.4xn/a€1.2b
SUBC Subsea 7
30.5x39.0%NOK 54.8b
002423 COFCO Capital Holdings
26.3x3.8%CN¥35.6b
54E Archrock
31.6x29.7%€4.5b

Price-To-Earnings vs Peers: 54E is good value based on its Price-To-Earnings Ratio (31.6x) compared to the peer average (38.6x).

Price to Earnings Ratio vs Industry

How does 54E's PE Ratio compare vs other companies in the European Energy Services Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
54E 31.6xIndustry Avg. 9.4xNo. of Companies7PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 54E is expensive based on its Price-To-Earnings Ratio (31.6x) compared to the European Energy Services industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is 54E'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.

54E PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.6x
Fair PE Ratio29.6x

Price-To-Earnings vs Fair Ratio: 54E is expensive based on its Price-To-Earnings Ratio (31.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 54E forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€24.40
€24.70
+1.2%
3.8%€25.65€22.80n/a8
Nov ’25€18.20
€22.45
+23.3%
3.5%€23.95€21.18n/a8
Oct ’25€18.00
€21.24
+18.0%
3.7%€22.39€19.70n/a7
Sep ’25€17.90
€21.70
+21.2%
4.8%€23.09€20.32n/a4
Aug ’25€19.00
€21.70
+14.2%
4.8%€23.09€20.32n/a4
Jul ’25€18.60
€20.23
+8.8%
3.2%€21.15€19.31n/a4
Jun ’25€18.00
€20.45
+13.6%
3.2%€21.38€19.52n/a4
May ’25€18.70
€20.34
+8.8%
3.8%€21.51€19.64n/a4
Apr ’25€17.70
€19.00
+7.4%
2.4%€19.47€18.54n/a4
Mar ’25€16.70
€18.67
+11.8%
2.1%€19.36€18.44n/a4
Feb ’25€15.20
€16.12
+6.1%
4.9%€16.58€14.74n/a4
Jan ’25€13.80
€15.98
+15.8%
4.8%€16.67€14.82n/a4
Dec ’24€13.10
€16.09
+22.8%
4.8%€16.79€14.92n/a4
Nov ’24€11.80
€15.13
+28.2%
6.3%€16.07€14.18€18.204
Oct ’24€12.20
€14.77
+21.1%
8.2%€15.95€13.13€18.004
Sep ’24€11.70
€14.40
+23.0%
8.2%€15.54€12.80€17.904
Aug ’24€11.00
€13.43
+22.1%
10.0%€15.48€11.84€19.004
Jul ’24€9.30
€12.21
+31.3%
6.4%€13.57€11.76€18.604
Jun ’24€8.35
€12.21
+46.2%
6.4%€13.57€11.76€18.004
May ’24€8.90
€12.24
+37.5%
6.4%€13.59€11.78€18.704
Apr ’24€8.80
€12.53
+42.4%
6.4%€13.93€12.07€17.704
Mar ’24€10.40
€12.92
+24.2%
6.9%€14.18€12.29€16.703
Feb ’24€9.05
€10.11
+11.7%
8.8%€11.37€9.47€15.203
Jan ’24€8.35
€10.11
+21.0%
8.8%€11.37€9.47€13.803
Dec ’23€8.25
€10.97
+33.0%
9.1%€11.97€9.98€13.102
Nov ’23€7.50
€10.65
+41.9%
4.8%€11.15€10.14€11.802

Analyst Forecast: Target price is less than 20% higher than the current share price.

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