We’ve recently updated our valuation analysis.

Antero Midstream Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AM 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/Revenue8.6x
Enterprise Value/EBITDA11.3x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.2x
DTM DT Midstream
14x3.2%US$5.2b
HESM Hess Midstream
16.4x1.6%US$7.4b
ENLC EnLink Midstream
24.4x9.6%US$7.1b
WES Western Midstream Partners
10x8.5%US$10.9b
AM Antero Midstream
16.1x10.9%US$5.2b

Price-To-Earnings vs Peers: AM is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (16.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-11.6%
n/an/an/a

Price-To-Earnings vs Industry: AM is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the US Oil and Gas industry average (7.2x)


Price to Earnings Ratio vs Fair Ratio

What is AM'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.

AM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.1x
Fair PE Ratio11.5x

Price-To-Earnings vs Fair Ratio: AM is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.5x).


Share Price vs Fair Value

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

Below Fair Value: AM ($10.82) is trading below our estimate of fair value ($14.46)

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


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 AM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$10.82
US$11.14
+3.0%
8.9%US$13.00US$10.00n/a7
Jan ’24US$10.79
US$10.86
+0.6%
9.1%US$13.00US$10.00n/a7
Dec ’23US$11.31
US$10.71
-5.3%
10.8%US$13.00US$9.00n/a7
Nov ’23US$10.87
US$10.71
-1.4%
10.8%US$13.00US$9.00n/a7
Oct ’23US$9.18
US$10.57
+15.2%
12.2%US$13.00US$9.00n/a7
Sep ’23US$9.94
US$10.57
+6.4%
12.2%US$13.00US$9.00n/a7
Aug ’23US$10.04
US$10.50
+4.6%
12.2%US$13.00US$9.00n/a7
Jul ’23US$9.25
US$10.69
+15.5%
10.2%US$13.00US$9.00n/a8
Jun ’23US$11.16
US$10.63
-4.8%
10.5%US$13.00US$9.00n/a8
May ’23US$10.27
US$10.50
+2.2%
10.6%US$13.00US$9.00n/a8
Apr ’23US$10.90
US$10.33
-5.2%
9.1%US$12.00US$9.00n/a9
Mar ’23US$10.02
US$10.33
+3.1%
10.2%US$12.00US$9.00n/a9
Feb ’23US$10.06
US$10.33
+2.7%
10.2%US$12.00US$9.00n/a9
Jan ’23US$9.68
US$10.25
+5.9%
10.5%US$12.00US$8.50US$10.7910
Dec ’22US$9.52
US$10.05
+5.6%
9.0%US$11.00US$8.50US$11.3110
Nov ’22US$10.71
US$10.00
-6.6%
8.5%US$11.00US$8.50US$10.879
Oct ’22US$10.71
US$9.44
-11.8%
5.8%US$10.00US$8.50US$9.189
Sep ’22US$9.72
US$9.44
-2.8%
5.8%US$10.00US$8.50US$9.949
Aug ’22US$9.50
US$9.44
-0.6%
5.8%US$10.00US$8.50US$10.049
Jul ’22US$10.58
US$9.22
-12.8%
7.3%US$10.00US$8.00US$9.259
Jun ’22US$10.13
US$8.94
-11.7%
8.1%US$10.00US$7.50US$11.169
May ’22US$8.64
US$8.33
-3.5%
12.3%US$9.50US$6.00US$10.279
Apr ’22US$9.12
US$8.17
-10.5%
11.9%US$9.50US$6.00US$10.909
Mar ’22US$9.29
US$7.89
-15.1%
9.8%US$9.00US$6.00US$10.029
Feb ’22US$8.00
US$7.39
-7.6%
14.9%US$9.00US$6.00US$10.069
Jan ’22US$7.71
US$6.75
-12.5%
11.1%US$8.00US$6.00US$9.6810

Analyst Forecast: Target price is less than 20% higher than the current share price.


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