APA Valuation

Is 0HGC 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 0HGC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HGC ($22.4) is trading below our estimate of fair value ($48.57)

Significantly Below Fair Value: 0HGC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HGC?

Key metric: As 0HGC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HGC. This is calculated by dividing 0HGC's market cap by their current earnings.
What is 0HGC's PE Ratio?
PE Ratio3.7x
EarningsUS$2.22b
Market CapUS$8.33b

Price to Earnings Ratio vs Peers

How does 0HGC's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
HBR Harbour Energy
48.4x14.4%UK£3.7b
ITH Ithaca Energy
13.3x-8.8%UK£1.7b
SEPL Seplat Energy
19.5x13.4%UK£1.2b
DEC Diversified Energy
5.6x1.1%UK£636.1m
3.7x-9.0%US$8.3b

Price-To-Earnings vs Peers: 0HGC is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (22.4x).


Price to Earnings Ratio vs Industry

How does 0HGC's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
INDI Indus Gas
0.9xn/aUS$17.76m
No more companies available in this PE range
0HGC 3.7xIndustry Avg. 9.1xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HGC is good value based on its Price-To-Earnings Ratio (3.7x) compared to the UK Oil and Gas industry average (9.1x).


Price to Earnings Ratio vs Fair Ratio

What is 0HGC'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.

0HGC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: 0HGC is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


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 0HGC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$22.40
US$32.44
+44.9%
23.2%US$49.00US$23.00n/a30
Nov ’25US$23.17
US$34.54
+49.1%
20.6%US$49.00US$25.00n/a30
Oct ’25US$25.46
US$35.81
+40.7%
19.7%US$52.00US$27.00n/a30
Sep ’25US$28.42
US$38.24
+34.6%
19.0%US$57.00US$28.00n/a30
Aug ’25US$30.88
US$38.82
+25.7%
18.9%US$57.00US$27.00n/a30
Jul ’25US$29.82
US$39.81
+33.5%
19.7%US$57.00US$27.00n/a29
Jun ’25US$30.47
US$40.54
+33.1%
19.8%US$57.00US$27.00n/a29
May ’25US$30.31
US$41.59
+37.2%
18.4%US$58.00US$28.00n/a30
Apr ’25US$34.60
US$40.83
+18.0%
18.2%US$59.00US$30.00n/a25
Mar ’25US$30.49
US$41.81
+37.1%
19.7%US$65.00US$32.00n/a25
Feb ’25US$30.85
US$44.01
+42.7%
20.3%US$64.00US$32.00n/a25
Jan ’25US$35.91
US$47.46
+32.2%
16.2%US$61.00US$35.00n/a28
Dec ’24US$36.45
US$48.96
+34.3%
16.3%US$65.00US$34.00n/a28
Nov ’24US$39.69
US$50.93
+28.3%
14.9%US$65.00US$34.00US$23.1728
Oct ’24US$41.19
US$50.64
+22.9%
14.2%US$65.00US$34.00US$25.4628
Sep ’24US$45.23
US$50.07
+10.7%
14.4%US$65.00US$34.00US$28.4228
Aug ’24US$39.81
US$45.79
+15.0%
17.3%US$65.00US$30.00US$30.8828
Jul ’24US$34.58
US$47.22
+36.6%
19.0%US$69.00US$35.00US$29.8227
Jun ’24US$32.33
US$47.59
+47.2%
18.0%US$69.00US$35.00US$30.4727
May ’24US$36.77
US$49.32
+34.1%
16.5%US$72.00US$36.00US$30.3128
Apr ’24US$35.69
US$48.86
+36.9%
15.1%US$64.00US$33.00US$34.6028
Mar ’24US$39.51
US$51.37
+30.0%
12.9%US$64.00US$39.00US$30.4927
Feb ’24US$42.26
US$52.82
+25.0%
15.5%US$71.00US$35.00US$30.8528
Jan ’24n/a
US$54.80
0%
16.4%US$71.00US$35.00US$35.9127
Dec ’23n/a
US$54.28
0%
17.9%US$71.00US$30.00US$36.4527
Nov ’23n/a
US$52.31
0%
18.5%US$75.00US$30.00US$39.6926

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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