We’ve recently updated our valuation analysis.

Callon Petroleum Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 CPE?

Other financial metrics that can be useful for relative valuation.

CPE 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/Revenue1.6x
Enterprise Value/EBITDA2.7x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.1x
NOG Northern Oil and Gas
3.7x12.9%US$2.8b
CRK Comstock Resources
3.6x12.5%US$3.4b
CRGY Crescent Energy
0.9x-10.0%US$2.0b
ESTE Earthstone Energy
4.3x11.8%US$2.1b
CPE Callon Petroleum
2.2x-11.5%US$2.7b

Price-To-Earnings vs Peers: CPE is good value based on its Price-To-Earnings Ratio (2.2x) compared to the peer average (3.1x).


Price to Earnings Ratio vs Industry

How does CPE'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: CPE is good value based on its Price-To-Earnings Ratio (2.2x) compared to the US Oil and Gas industry average (7.1x)


Price to Earnings Ratio vs Fair Ratio

What is CPE'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.

CPE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.2x
Fair PE Ratio5.4x

Price-To-Earnings vs Fair Ratio: CPE is good value based on its Price-To-Earnings Ratio (2.2x) compared to the estimated Fair Price-To-Earnings Ratio (5.4x).


Share Price vs Fair Value

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

Below Fair Value: CPE ($43.89) is trading below our estimate of fair value ($75.26)

Significantly Below Fair Value: CPE 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 CPE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$43.89
US$57.15
+30.2%
15.8%US$71.00US$43.00n/a13
Jan ’24US$37.09
US$60.44
+62.9%
14.2%US$71.00US$45.00n/a12
Dec ’23US$40.92
US$61.94
+51.4%
14.3%US$74.00US$49.00n/a12
Nov ’23US$45.02
US$60.77
+35.0%
16.6%US$80.00US$45.00n/a12
Oct ’23US$35.01
US$71.17
+103.3%
32.3%US$132.00US$45.00n/a12
Sep ’23US$40.99
US$71.25
+73.8%
30.0%US$124.00US$40.00n/a12
Aug ’23US$44.24
US$72.50
+63.9%
28.9%US$124.00US$40.00n/a12
Jul ’23US$39.27
US$82.04
+108.9%
27.3%US$145.00US$60.00n/a13
Jun ’23US$62.46
US$82.73
+32.5%
26.9%US$140.00US$60.00n/a13
May ’23US$51.27
US$82.81
+61.5%
24.8%US$140.00US$60.00n/a13
Apr ’23US$62.42
US$77.65
+24.4%
26.1%US$132.00US$60.00n/a12
Mar ’23US$58.96
US$68.37
+16.0%
14.4%US$95.00US$56.00n/a13
Feb ’23US$51.06
US$68.13
+33.4%
14.7%US$95.00US$56.00n/a14
Jan ’23US$47.25
US$70.07
+48.3%
13.7%US$93.00US$56.00US$37.0914
Dec ’22US$46.79
US$69.93
+49.5%
13.7%US$93.00US$56.00US$40.9214
Nov ’22US$54.73
US$62.31
+13.8%
20.7%US$102.00US$50.00US$45.0213
Oct ’22US$50.43
US$48.35
-4.1%
20.5%US$75.00US$37.00US$35.0112
Sep ’22US$33.71
US$49.94
+48.1%
18.2%US$69.00US$37.00US$40.9912
Aug ’22US$39.36
US$54.16
+37.6%
13.7%US$69.00US$43.00US$44.2414
Jul ’22US$59.51
US$46.02
-22.7%
27.8%US$61.00US$7.00US$39.2715
Jun ’22US$43.14
US$40.60
-5.9%
25.6%US$54.00US$7.00US$62.4615
May ’22US$37.39
US$34.47
-7.8%
27.2%US$42.00US$7.00US$51.2715
Apr ’22US$40.70
US$32.63
-19.8%
32.7%US$43.00US$7.00US$62.4216
Mar ’22US$27.09
US$18.07
-33.3%
39.7%US$31.00US$7.00US$58.9615
Feb ’22US$14.25
US$14.88
+4.4%
26.7%US$21.00US$7.00US$51.0616
Jan ’22US$13.16
US$10.84
-17.6%
44.7%US$20.00US$1.00US$47.2516

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.


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