Archaea Energy Inc.

NYSE:LFG Stock Report

Market Cap: US$3.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Archaea Energy Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate LFG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LFG's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As LFG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LFG. This is calculated by dividing LFG's market cap by their current revenue.
What is LFG's PS Ratio?
PS Ratio7.6x
SalesUS$285.98m
Market CapUS$3.14b

Price to Sales Ratio vs Peers

How does LFG's PS Ratio compare to its peers?

The above table shows the PS ratio for LFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.2x
CVI CVR Energy
0.3x1.59%US$2.4b
VTNR.Q Vertex Energy
0.000003xn/aUS$9.4k
PBF PBF Energy
0.08x2.61%US$2.6b
SUN Sunoco
0.3x4.41%US$7.7b
LFG Archaea Energy
7.6x27.45%US$3.1b

Price-To-Sales vs Peers: LFG is expensive based on its Price-To-Sales Ratio (7.6x) compared to the peer average (0.2x).

Price to Sales Ratio vs Industry

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

43 CompaniesPrice / SalesEstimated GrowthMarket Cap
PSX Phillips 66
0.4x-3.44%US$51.25b
MPC Marathon Petroleum
0.4x-2.48%US$50.42b
VLO Valero Energy
0.3x0.42%US$42.51b
PAA Plains All American Pipeline
0.2x3.50%US$12.13b
LFG 7.6xIndustry Avg. 1.7xNo. of Companies43PS01.63.24.86.48+
43 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LFG is expensive based on its Price-To-Sales Ratio (7.6x) compared to the US Oil and Gas industry average (1.4x)

Price to Sales Ratio vs Fair Ratio

What is LFG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LFG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.6x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: LFG is expensive based on its Price-To-Sales Ratio (7.6x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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 LFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
May ’26n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Apr ’26n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Mar ’26n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Feb ’26n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jan ’26n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Dec ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Nov ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Oct ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Sep ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Aug ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jul ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jun ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
May ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Apr ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Mar ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Feb ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jan ’25n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Dec ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Nov ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Oct ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Sep ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Aug ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jul ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
Jun ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
May ’24n/a
US$27.33
0%
5.85%US$30.00US$26.00n/a6
AnalystConsensusTarget
Consensus Narrative from 6 Analysts
US$27.33
Fair Value
4.9% undervalued intrinsic discount
6
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/12/29 11:58
End of Day Share Price 2022/12/27 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

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.

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 Github.

Analyst Sources

Archaea Energy Inc. is covered by 10 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Theresa ChenBarclays
Richard TullisCapital One Securities, Inc.
Hamzah MazariJefferies LLC