We’ve recently updated our valuation analysis.

Hess Midstream Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 HESM?

Other financial metrics that can be useful for relative valuation.

HESM 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/Revenue3.5x
Enterprise Value/EBITDA4.6x
PEG Ratio4.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HESM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.9x
ENLC EnLink Midstream
23.1x10.0%US$6.7b
DTM DT Midstream
15.4x1.7%US$5.7b
PAA Plains All American Pipeline
8.5x3.6%US$8.7b
AM Antero Midstream
16.5x5.6%US$5.3b
HESM Hess Midstream
17x3.5%US$7.1b

Price-To-Earnings vs Peers: HESM is expensive based on its Price-To-Earnings Ratio (17x) compared to the peer average (15.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-12.6%
n/an/an/a

Price-To-Earnings vs Industry: HESM is expensive based on its Price-To-Earnings Ratio (17x) compared to the US Oil and Gas industry average (7.5x)


Price to Earnings Ratio vs Fair Ratio

What is HESM'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.

HESM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: HESM is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).


Share Price vs Fair Value

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

Below Fair Value: HESM ($30.48) is trading above our estimate of fair value ($29.79)

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


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 HESM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$30.48
US$34.00
+11.5%
4.2%US$36.00US$32.00n/a4
Nov ’23US$29.12
US$34.50
+18.5%
6.3%US$38.00US$32.00n/a4
Oct ’23US$25.52
US$35.25
+38.1%
4.7%US$38.00US$34.00n/a4
Sep ’23US$28.57
US$34.60
+21.1%
9.2%US$40.00US$30.00n/a5
Aug ’23US$30.00
US$34.20
+14.0%
9.5%US$40.00US$30.00n/a5
Jul ’23US$28.15
US$34.40
+22.2%
9.5%US$40.00US$30.00n/a5
Jun ’23US$33.48
US$33.80
+1.0%
11.0%US$40.00US$30.00n/a5
May ’23US$29.41
US$33.40
+13.6%
9.2%US$38.00US$30.00n/a5
Apr ’23US$30.20
US$32.33
+7.1%
8.5%US$38.00US$30.00n/a6
Mar ’23US$31.82
US$32.17
+1.1%
9.0%US$38.00US$29.00n/a6
Feb ’23US$29.83
US$32.17
+7.8%
9.0%US$38.00US$29.00n/a6
Jan ’23US$27.63
US$29.75
+7.7%
4.4%US$31.00US$27.00n/a8
Dec ’22US$24.00
US$29.63
+23.4%
4.1%US$31.00US$27.00n/a8
Nov ’22US$25.97
US$29.50
+13.6%
4.2%US$31.00US$27.00US$29.128
Oct ’22US$27.96
US$29.50
+5.5%
6.8%US$32.00US$25.00US$25.528
Sep ’22US$25.65
US$28.75
+12.1%
7.7%US$32.00US$25.00US$28.578
Aug ’22US$25.88
US$28.38
+9.6%
7.3%US$32.00US$25.00US$30.008
Jul ’22US$25.25
US$26.50
+5.0%
9.0%US$30.00US$22.00US$28.158
Jun ’22US$24.90
US$25.86
+3.8%
8.1%US$29.00US$22.00US$33.487
May ’22US$22.33
US$25.14
+12.6%
7.8%US$28.00US$22.00US$29.417
Apr ’22US$23.48
US$25.00
+6.5%
8.0%US$28.00US$22.00US$30.207
Mar ’22US$22.50
US$24.43
+8.6%
7.5%US$27.00US$22.00US$31.827
Feb ’22US$21.50
US$24.43
+13.6%
7.5%US$27.00US$22.00US$29.837
Jan ’22US$19.57
US$22.50
+15.0%
8.0%US$26.00US$20.00US$27.636
Dec ’21US$18.67
US$21.00
+12.5%
6.7%US$23.00US$19.00US$24.006
Nov ’21US$17.08
US$20.83
+22.0%
5.8%US$22.00US$19.00US$25.976

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


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