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

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.

Discounted Cash Flow
Simply Wall St
US$53.87
Fair Value
22.2% undervalued intrinsic discount
5
Number of Analysts


Key Valuation Metric

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

Key metric:

The above table shows the Price to Earnings ratio for HESM. This is calculated by dividing HESM's market cap by their current earnings.
What is HESM's PE Ratio?
PE Ratio19.6x
EarningsUS$223.10m
Market CapUS$9.09b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.4x
PAGP Plains GP Holdings
26.3x18.8%US$5.1b
NFE New Fortress Energy
22.1x-101.5%US$4.1b
KNTK Kinetik Holdings
12.9x-2.4%US$10.2b
AM Antero Midstream
20.1x13.0%US$7.5b
HESM Hess Midstream
19.6x8.0%US$9.1b


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
USDP USD Partners
1.4xn/aUS$819.03k
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
No. of Companies18PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies


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 Ratio19.6x
Fair PE Ratio13.6x


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target
Consensus Narrative from 5 Analysts
US$42.60
Fair Value
1.6% undervalued intrinsic discount
5
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/30 22:48
End of Day Share Price 2025/01/30 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hess Midstream LP is covered by 12 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Douglas IrwinCitigroup Inc
Spiro DounisCredit Suisse
John MackayGoldman Sachs