Callon Petroleum Valuation

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

Below Fair Value: CPE ($35.76) is trading below our estimate of fair value ($42.14)

Significantly Below Fair Value: CPE is trading below fair value, but not by a significant amount.


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/Revenue1.9x
Enterprise Value/EBITDA3.3x
PEG Ratio1.9x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.5x
CRGY Crescent Energy
136.8x45.8%US$3.1b
KOS Kosmos Energy
8.1x0.4%US$2.1b
KRP Kimbell Royalty Partners
38.1x44.6%US$1.6b
NOG Northern Oil and Gas
7x-4.2%US$4.0b
CPE Callon Petroleum
5.9x3.2%US$2.4b

Price-To-Earnings vs Peers: CPE is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (10.5x).


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/a5.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CPE is good value based on its Price-To-Earnings Ratio (5.9x) compared to the US Oil and Gas industry average (9.4x).


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 Ratio5.9x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: CPE is good value based on its Price-To-Earnings Ratio (5.9x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).


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
Currentn/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Oct ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Sep ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Aug ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Jul ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Jun ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
May ’25n/a
US$44.80
0%
15.8%US$56.70US$35.00n/a8
Apr ’25US$35.76
US$44.80
+25.3%
15.8%US$56.70US$35.00n/a8
Mar ’25US$31.86
US$42.20
+32.5%
17.7%US$56.70US$32.00n/a12
Feb ’25US$31.81
US$42.37
+33.2%
17.5%US$56.70US$32.00n/a12
Jan ’25US$32.40
US$45.63
+40.8%
16.0%US$60.00US$35.00n/a14
Dec ’24US$31.35
US$45.98
+46.7%
15.6%US$60.00US$36.00n/a14
Nov ’24US$36.80
US$49.19
+33.7%
13.7%US$63.00US$38.00n/a14
Oct ’24US$39.12
US$48.82
+24.8%
13.4%US$59.00US$38.00n/a13
Sep ’24US$40.68
US$48.67
+19.6%
13.5%US$59.00US$38.00n/a13
Aug ’24US$36.74
US$47.21
+28.5%
15.6%US$59.00US$36.00n/a13
Jul ’24US$35.07
US$50.06
+42.7%
20.7%US$71.00US$36.00n/a12
Jun ’24US$31.45
US$49.64
+57.8%
20.3%US$71.00US$36.00n/a12
May ’24US$33.11
US$52.21
+57.7%
12.3%US$60.00US$40.00n/a13
Apr ’24US$33.44
US$54.85
+64.0%
15.9%US$70.00US$43.00US$35.7613
Mar ’24US$39.78
US$56.62
+42.3%
15.5%US$70.00US$43.00US$31.8613
Feb ’24US$41.64
US$56.92
+36.7%
15.3%US$70.00US$43.00US$31.8113
Jan ’24US$37.09
US$60.44
+62.9%
14.2%US$71.00US$45.00US$32.4012
Dec ’23US$40.92
US$61.94
+51.4%
14.3%US$74.00US$49.00US$31.3512
Nov ’23US$45.02
US$60.77
+35.0%
16.6%US$80.00US$45.00US$36.8012
Oct ’23US$35.01
US$71.17
+103.3%
32.3%US$132.00US$45.00US$39.1212

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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