VAALCO Energy, Inc.

NYSE:EGY Stock Report

Market Cap: US$549.8m

VAALCO Energy Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: EGY ($5.41) is trading below our estimate of fair value ($80.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EGY. This is calculated by dividing EGY's market cap by their current earnings.
What is EGY's PE Ratio?
PE Ratio6.2x
EarningsUS$89.83m
Market CapUS$549.84m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EGY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10x
PBT Permian Basin Royalty Trust
17.7xn/aUS$612.9m
REPX Riley Exploration Permian
6.6x21.8%US$754.5m
PNRG PrimeEnergy Resources
6xn/aUS$342.1m
SBR Sabine Royalty Trust
9.7xn/aUS$901.4m
EGY VAALCO Energy
6.2x-3.2%US$549.8m

Price-To-Earnings vs Peers: EGY is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
EGY 6.2xIndustry Avg. 11.7xNo. of Companies19PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EGY is good value based on its Price-To-Earnings Ratio (6.2x) compared to the US Oil and Gas industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is EGY'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.

EGY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ratio7.9x

Price-To-Earnings vs Fair Ratio: EGY is good value based on its Price-To-Earnings Ratio (6.2x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).

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 EGY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$5.41
US$9.17
+69.4%
9.3%US$10.00US$8.00n/a3
Nov ’25US$5.24
US$9.17
+74.9%
9.3%US$10.00US$8.00n/a3
Oct ’25US$5.90
US$9.17
+55.4%
9.3%US$10.00US$8.00n/a3
Sep ’25US$6.51
US$9.17
+40.8%
9.3%US$10.00US$8.00n/a3
Aug ’25US$6.90
US$9.17
+32.9%
9.3%US$10.00US$8.00n/a3
Jul ’25US$6.23
US$9.17
+47.1%
9.3%US$10.00US$8.00n/a3
Jun ’25US$6.38
US$8.92
+39.8%
13.4%US$10.00US$7.25n/a3
May ’25US$6.15
US$8.75
+42.3%
13.0%US$10.00US$7.25n/a3
Apr ’25US$7.21
US$8.75
+21.4%
13.0%US$10.00US$7.25n/a3
Mar ’25US$4.44
US$8.75
+97.1%
13.0%US$10.00US$7.25n/a3
Feb ’25US$4.25
US$8.60
+102.4%
6.6%US$9.00US$7.80n/a3
Jan ’25US$4.49
US$8.60
+91.5%
6.6%US$9.00US$7.80n/a3
Dec ’24US$4.66
US$8.60
+84.5%
6.6%US$9.00US$7.80n/a3
Nov ’24US$4.41
US$8.40
+90.5%
7.1%US$9.00US$7.80US$5.242
Oct ’24US$4.39
US$8.40
+91.3%
7.1%US$9.00US$7.80US$5.902
Sep ’24US$4.39
US$8.40
+91.3%
7.1%US$9.00US$7.80US$6.512
Aug ’24US$4.48
US$8.40
+87.5%
7.1%US$9.00US$7.80US$6.902
Jul ’24US$3.76
US$9.25
+146.0%
2.7%US$9.50US$9.00US$6.232
Jun ’24US$3.93
US$9.25
+135.4%
2.7%US$9.50US$9.00US$6.382
May ’24US$4.25
US$9.25
+117.6%
2.7%US$9.50US$9.00US$6.152
Feb ’24US$4.60
US$10.00
+117.4%
5.0%US$10.50US$9.50US$4.252
Jan ’24US$4.56
US$10.00
+119.3%
5.0%US$10.50US$9.50US$4.492
Dec ’23US$5.21
US$10.00
+91.9%
5.0%US$10.50US$9.50US$4.662
Nov ’23US$5.25
US$10.00
+90.5%
5.0%US$10.50US$9.50US$4.412

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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