Zephyr Energy plc

AIM:ZPHR Stock Report

Market Cap: UK£46.4m

Zephyr Energy Valuation

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

Below Fair Value: ZPHR (£0.03) is trading below our estimate of fair value (£0.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZPHR. This is calculated by dividing ZPHR's market cap by their current revenue.
What is ZPHR's PS Ratio?
PS Ratio2.5x
SalesUS$23.49m
Market CapUS$59.13m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ZPHR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
WEN Wentworth Resources
1.8x-25.3%UK£58.2m
CASP Caspian Sunrise
2.4x-11.2%UK£69.9m
PHAR Pharos Energy
0.8x-8.0%UK£90.2m
CNE Capricorn Energy
1.2x-14.0%UK£165.2m
ZPHR Zephyr Energy
2.5x37.3%UK£46.4m

Price-To-Sales vs Peers: ZPHR is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
ROSN Rosneft Oil
0.1xn/aUS$21.03b
TLW Tullow Oil
0.2x-6.3%US$384.03m
ENQ EnQuest
0.2x-9.7%US$265.37m
NWF NWF Group
0.08x4.8%US$94.54m
ZPHR 2.5xIndustry Avg. 1.4xNo. of Companies11PS01.22.43.64.86+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZPHR is expensive based on its Price-To-Sales Ratio (2.5x) compared to the UK Oil and Gas industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is ZPHR'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.

ZPHR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio2.5x

Price-To-Sales vs Fair Ratio: ZPHR is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).

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 ZPHR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.026
UK£0.13
+399.4%
2.5%UK£0.14UK£0.13n/a3
Nov ’25UK£0.03
UK£0.14
+374.4%
9.0%UK£0.16UK£0.13n/a3
Oct ’25UK£0.035
UK£0.14
+306.7%
9.0%UK£0.16UK£0.13n/a3
Sep ’25UK£0.037
UK£0.13
+255.9%
6.5%UK£0.14UK£0.12n/a3
Aug ’25UK£0.043
UK£0.13
+210.6%
6.5%UK£0.14UK£0.12n/a3
Jul ’25UK£0.051
UK£0.12
+136.9%
8.8%UK£0.14UK£0.11n/a3
Jun ’25UK£0.053
UK£0.13
+134.3%
12.1%UK£0.15UK£0.11n/a3
May ’25UK£0.046
UK£0.13
+186.0%
9.8%UK£0.15UK£0.12n/a2
Apr ’25UK£0.042
UK£0.13
+216.7%
9.8%UK£0.15UK£0.12n/a2
Mar ’25UK£0.022
UK£0.16
+636.4%
1.2%UK£0.16UK£0.16n/a2
Feb ’25UK£0.025
UK£0.16
+535.3%
1.2%UK£0.16UK£0.16n/a2
Jan ’25UK£0.027
UK£0.16
+500.0%
1.2%UK£0.16UK£0.16n/a2
Dec ’24UK£0.022
UK£0.16
+620.0%
1.2%UK£0.16UK£0.16UK£0.0262
Nov ’24UK£0.029
UK£0.16
+449.2%
1.2%UK£0.16UK£0.16UK£0.032
Oct ’24UK£0.026
UK£0.17
+561.5%
4.7%UK£0.18UK£0.16UK£0.0352
Sep ’24UK£0.033
UK£0.17
+435.4%
3.4%UK£0.18UK£0.17UK£0.0372
Aug ’24UK£0.038
UK£0.17
+357.9%
3.4%UK£0.18UK£0.17UK£0.0432
Jul ’24UK£0.038
UK£0.17
+357.9%
3.4%UK£0.18UK£0.17UK£0.0512
Jun ’24UK£0.037
UK£0.18
+400.0%
8.1%UK£0.20UK£0.17UK£0.0532
May ’24UK£0.045
UK£0.18
+306.6%
8.1%UK£0.20UK£0.17UK£0.0462
Apr ’24UK£0.051
UK£0.18
+262.7%
8.1%UK£0.20UK£0.17UK£0.0422
Mar ’24UK£0.056
UK£0.18
+233.3%
8.1%UK£0.20UK£0.17UK£0.0222
Feb ’24UK£0.072
UK£0.18
+150.0%
11.1%UK£0.20UK£0.16UK£0.0252
Dec ’23UK£0.06
UK£0.14
+133.9%
13.1%UK£0.16UK£0.12UK£0.0222

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

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