OKEA Valuation

Q: What is the Fair Price of OKEAO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

OKEAO (NOK24.3) is trading below our estimate of [[fair value]] (NOK43.56)

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

Below Fair Value: OKEAO (NOK24.3) is trading below our estimate of fair value (NOK43.56)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for OKEAO. This is calculated by dividing OKEAO's market cap by their current revenue.
What is OKEAO's PS Ratio?
PS Ratio	0.3x
Sales	NOK 9.23b
Market Cap	NOK 2.50b

OKEAO 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	0.3x
Enterprise Value/EBITDA	0.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for OKEAO 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	0.5x
CNE Capricorn Energy	1x	-13.8%	UK£149.8m
ENQ EnQuest	0.2x	-9.7%	UK£227.1m
JSE Jadestone Energy	0.4x	2.8%	UK£132.5m
TLW Tullow Oil	0.3x	-6.1%	UK£337.5m
OKEAO OKEA	0.3x	-12.5%	NOK 2.5b

Price-To-Sales vs Peers: OKEAO is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

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

12 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	n/a	-2.0%
OKEAO OKEA	0.3x	-12.5%	US$233.46m
ROSN Rosneft Oil	0.1x	n/a	US$21.03b
TLW Tullow Oil	0.3x	-6.1%	US$425.46m

12 Companies		Estimated Growth	Market Cap
Industry Avg.	n/a	11.3%
OKEAO OKEA	0.3x	79.2%	US$233.46m

No more companies

Price-To-Sales vs Industry: OKEAO is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Oil and Gas industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is OKEAO'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.

OKEAO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

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