American Resources Valuation

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

AREC ($1.05) is trading below our estimate of [[fair value]] ($24.05)

Is AREC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: AREC ($1.05) is trading below our estimate of fair value ($24.05)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AREC. This is calculated by dividing AREC's market cap by their current preferred multiple.
What is AREC's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$80.52m

AREC 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	48.1x
Enterprise Value/EBITDA	-14.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AREC 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	2.7x
NC NACCO Industries	1x	n/a	US$228.5m
HNRG Hallador Energy	0.9x	8.3%	US$423.0m
LEU Centrus Energy	4.6x	4.4%	US$1.7b
NRP Natural Resource Partners	4.4x	n/a	US$1.2b
AREC American Resources	13.6x	104.9%	US$80.5m

Price-To-Sales vs Peers: AREC is expensive based on its Price-To-Sales Ratio (13.6x) compared to the peer average (2.7x).

Price to Earnings Ratio vs Industry

How does AREC's PE Ratio compare vs other companies in the US Oil and Gas Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.4%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: AREC is expensive based on its Price-To-Sales Ratio (13.6x) compared to the US Oil and Gas industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is AREC'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.

AREC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	13.6x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: AREC is expensive based on its Price-To-Sales Ratio (13.6x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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.