Rompetrol Rafinare Valuation

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

RRC (RON0.07) is trading below our estimate of [[fair value]] (RON0.13)

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

Below Fair Value: RRC (RON0.07) is trading below our estimate of fair value (RON0.13)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RRC. This is calculated by dividing RRC's market cap by their current revenue.
What is RRC's PS Ratio?
PS Ratio	0.1x
Sales	US$3.70b
Market Cap	US$393.20m

RRC 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	0.2x
Enterprise Value/EBITDA	7.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RRC 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	1.4x
COTE Conpet	1.2x	n/a	RON 666.6m
OIL Oil Terminal	0.8x	n/a	RON 373.1m
000554 SINOPEC Shandong Taishan Pectroleum	0.8x	n/a	CN¥2.8b
SNG SNGN Romgaz	2.7x	12.5%	RON 21.0b
RRC Rompetrol Rafinare	0.1x	n/a	RON 1.8b

Price-To-Sales vs Peers: RRC is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

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

21 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.2x	-1.1%
RRC Rompetrol Rafinare	0.1x	n/a	US$381.96m

21 Companies		Estimated Growth	Market Cap
Industry Avg.	1.2x	6.5%
RRC Rompetrol Rafinare	0.1x	n/a	US$381.96m

No more companies

Price-To-Sales vs Industry: RRC is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Oil and Gas industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is RRC'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.

RRC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

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