Kosmos Energy Ltd.

LSE:KOS Stock Report

Market Cap: UK£1.5b

Kosmos Energy Valuation

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

Below Fair Value: KOS (£3.18) is trading below our estimate of fair value (£5.65)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KOS. This is calculated by dividing KOS's market cap by their current earnings.
What is KOS's PE Ratio?
PE Ratio8.7x
EarningsUS$218.11m
Market CapUS$1.89b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
SEPL Seplat Energy
19.5x13.4%UK£1.3b
ITH Ithaca Energy
14.7x-8.4%UK£1.9b
HBR Harbour Energy
49.1x14.4%UK£3.8b
DEC Diversified Energy
5.7x1.1%UK£652.0m
KOS Kosmos Energy
8.7x5.2%UK£1.9b

Price-To-Earnings vs Peers: KOS is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does KOS'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$17.23m
No more companies available in this PE range
KOS 8.7xIndustry Avg. 8.9xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KOS is good value based on its Price-To-Earnings Ratio (8.7x) compared to the UK Oil and Gas industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is KOS'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.

KOS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: KOS is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).

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 KOS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.18
UK£5.40
+69.8%
25.1%UK£7.49UK£3.16n/a8
Nov ’25UK£2.99
UK£5.46
+82.8%
22.1%UK£7.32UK£3.85n/a8
Oct ’25UK£3.01
UK£5.35
+77.8%
22.0%UK£7.11UK£3.74n/a8
Sep ’25UK£3.90
UK£6.19
+58.8%
19.8%UK£8.22UK£3.92n/a7
Aug ’25UK£4.20
UK£6.15
+46.3%
19.8%UK£8.16UK£3.89n/a7
Jul ’25UK£4.29
UK£6.53
+52.2%
13.1%UK£8.30UK£5.54n/a7
Jun ’25UK£4.90
UK£6.63
+35.3%
14.6%UK£8.29UK£5.53n/a7
May ’25UK£4.74
UK£6.65
+40.3%
15.1%UK£8.37UK£5.58n/a7
Apr ’25UK£4.72
UK£6.49
+37.5%
15.1%UK£8.17UK£5.45n/a7
Mar ’25UK£4.95
UK£6.65
+34.4%
14.6%UK£8.32UK£5.55n/a7
Feb ’25UK£4.90
UK£7.29
+48.9%
8.8%UK£8.28UK£6.31n/a8
Jan ’25UK£5.43
UK£7.39
+36.2%
8.4%UK£8.22UK£6.26n/a8
Dec ’24UK£5.53
UK£7.90
+42.9%
17.2%UK£11.19UK£6.40n/a8
Nov ’24UK£6.03
UK£8.06
+33.8%
14.3%UK£10.62UK£6.94UK£2.997
Oct ’24UK£6.78
UK£8.20
+21.0%
15.7%UK£10.66UK£6.97UK£3.018
Sep ’24UK£5.95
UK£7.74
+30.2%
16.0%UK£10.33UK£6.75UK£3.909
Aug ’24UK£5.43
UK£7.65
+40.9%
16.8%UK£10.10UK£6.22UK£4.208
Jul ’24UK£4.41
UK£8.00
+81.3%
17.4%UK£10.31UK£6.34UK£4.297
Jun ’24UK£4.88
UK£7.62
+56.1%
24.9%UK£10.48UK£4.04UK£4.908
May ’24UK£5.00
UK£7.89
+57.8%
25.2%UK£11.25UK£4.03UK£4.748
Apr ’24UK£6.20
UK£7.90
+27.5%
24.0%UK£11.41UK£4.08UK£4.728
Mar ’24UK£6.50
UK£7.93
+22.0%
22.7%UK£11.64UK£4.16UK£4.9510
Feb ’24UK£6.35
UK£7.71
+21.4%
23.9%UK£11.34UK£4.06UK£4.909
Jan ’24UK£5.10
UK£7.49
+46.8%
20.9%UK£9.80UK£4.09UK£5.439
Dec ’23UK£5.25
UK£7.49
+42.6%
20.9%UK£9.80UK£4.09UK£5.539
Nov ’23UK£5.70
UK£7.75
+36.1%
21.8%UK£10.14UK£4.23UK£6.039

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.

Discover undervalued companies

Avance Gas Holding

NOK 8.1b

Engages in the transportation of liquefied petroleum gas (LPG) worldwide.

0QTX

NOK 104.60

7D

-3.3%

1Y

-40.6%

VAALCO Energy

US$561.3m

An independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada.

EGY

US$4.63

7D

0%

1Y

28.5%

SBM Offshore

€3.1b

Provides floating production solutions to the offshore energy industry worldwide.

0NIS

€17.85

7D

1.5%

1Y

44.2%