Epsilon Energy Valuation

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

EPSN ($5.94) is trading above our estimate of [[fair value]] ($0.87)

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: EPSN ($5.94) is trading above our estimate of fair value ($0.87)

Significantly Below Fair Value: EPSN is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EPSN. This is calculated by dividing EPSN's market cap by their current earnings.
What is EPSN's PE Ratio?
PE Ratio	24.6x
Earnings	US$5.28m
Market Cap	US$128.30m

EPSN 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	3.9x
Enterprise Value/EBITDA	7.4x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EPSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	24x
PHX PHX Minerals	29.3x	89.3%	US$133.4m
EPM Evolution Petroleum	42.1x	n/a	US$193.1m
AMPY Amplify Energy	4.3x	-8.0%	US$260.9m
SJT San Juan Basin Royalty Trust	20.3x	n/a	US$175.7m
EPSN Epsilon Energy	24.6x	45.0%	US$128.3m

Price-To-Earnings vs Peers: EPSN is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (24x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
AXAS Abraxas Petroleum	0.09x	n/a	US$10.27m
BYRO.F Byron Energy	0.03x	-10.3%	US$312.17k
USOP.Y U.S. Oil and Gas	n/a	n/a	US$6.00

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: EPSN is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the US Oil and Gas industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is EPSN'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.

EPSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.6x
Fair PE Ratio	14.2x

Price-To-Earnings vs Fair Ratio: EPSN is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).

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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