MEG Energy Corp.

DB:ME7 Stock Report

Market Cap: €4.8b

MEG Energy Valuation

Is ME7 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-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 ME7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ME7 (€18.2) is trading below our estimate of fair value (€38.59)

Significantly Below Fair Value: ME7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ME7?

Key metric: As ME7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ME7. This is calculated by dividing ME7's market cap by their current earnings.
What is ME7's PE Ratio?
PE Ratio13.9x
EarningsCA$504.00m
Market CapCA$7.02b

Price to Earnings Ratio vs Peers

How does ME7's PE Ratio compare to its peers?

The above table shows the PE ratio for ME7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.1x
DR0 Deutsche Rohstoff
2.9x-8.9%€168.6m
CE2 CropEnergies
82.4xn/a€1.2b
CE2 CropEnergies
15.3x-7.5%€1.0b
VH2 Friedrich Vorwerk Group
19.9x12.9%€559.0m
ME7 MEG Energy
13.9x-1.8%€7.0b

Price-To-Earnings vs Peers: ME7 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (30.1x).

Price to Earnings Ratio vs Industry

How does ME7's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ME7 13.9xIndustry Avg. 9.2xNo. of Companies18PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ME7 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the European Oil and Gas industry average (9.2x).

Price to Earnings Ratio vs Fair Ratio

What is ME7'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.

ME7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: ME7 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).

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 ME7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€18.20
€22.26
+22.3%
10.0%€25.68€17.57n/a15
Nov ’25€16.60
€21.99
+32.5%
10.1%€25.40€17.38n/a15
Oct ’25€16.60
€22.43
+35.1%
10.3%€25.44€17.41n/a15
Sep ’25€17.70
€22.98
+29.8%
8.4%€25.87€18.57n/a15
Aug ’25€18.60
€23.21
+24.8%
8.9%€26.71€18.70n/a15
Jul ’25€19.70
€23.83
+21.0%
8.9%€27.34€19.14n/a15
Jun ’25€19.90
€23.53
+18.2%
9.5%€26.99€18.89n/a15
May ’25€21.60
€23.84
+10.4%
9.7%€27.35€19.15n/a14
Apr ’25€21.16
€22.10
+4.4%
10.5%€25.32€17.80n/a14
Mar ’25€19.76
€21.12
+6.9%
10.2%€23.82€17.70n/a14
Feb ’25€16.77
€20.89
+24.6%
9.9%€24.09€17.90n/a13
Jan ’25€15.93
€20.87
+31.0%
8.3%€24.64€18.48n/a13
Dec ’24€17.17
€20.68
+20.5%
7.8%€24.14€18.11n/a13
Nov ’24€18.57
€20.83
+12.2%
7.7%€24.53€18.40€16.6013
Oct ’24€18.37
€19.49
+6.1%
10.4%€23.16€16.14€16.6013
Sep ’24€17.34
€18.08
+4.3%
8.7%€21.84€15.70€17.7013
Aug ’24€16.18
€17.87
+10.5%
9.0%€20.56€14.74€18.6013
Jul ’24€14.41
€17.76
+23.3%
8.9%€20.14€14.59€19.7013
Jun ’24€14.58
€17.75
+21.7%
10.2%€20.57€14.40€19.9013
May ’24€15.04
€17.77
+18.2%
10.8%€21.10€14.29€21.6013
Apr ’24€14.70
€16.81
+14.4%
9.8%€20.30€14.21€21.1613
Mar ’24€15.10
€16.77
+11.0%
12.5%€20.69€13.11€19.7613
Feb ’24€14.80
€16.30
+10.1%
16.0%€23.51€13.14€16.7714
Jan ’24€12.60
€16.62
+31.9%
15.8%€23.55€12.47€15.9314
Dec ’23€13.40
€17.21
+28.4%
14.8%€24.24€13.54€17.1714
Nov ’23€14.70
€17.26
+17.4%
17.0%€25.27€13.38€18.5714

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

International Seaways

US$2.0b

Owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade.

IS5

US$39.13

7D

-2.2%

1Y

-9.0%

Hafnia

NOK 31.2b

Owns and operates oil product tankers in Bermuda.

RE0

NOK 5.10

7D

6.8%

1Y

-15.4%

Rubellite Energy

CA$215.6m

Rubellite Energy Inc., an energy company, engages in the exploration, development, and production of heavy crude oil from the Clearwater Formation in Eastern Alberta.

6L00

CA$1.31

7D

0%

1Y

-16.0%