We’ve recently updated our valuation analysis.

Talos Energy Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 TALO?

Other financial metrics that can be useful for relative valuation.

TALO 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/Revenue1.4x
Enterprise Value/EBITDA2.2x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TALO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.1x
ROCC Ranger Oil
3.1x29.4%US$1.6b
GPOR Gulfport Energy
4.5x64.0%US$1.4b
SBR Sabine Royalty Trust
11.1xn/aUS$1.2b
DMLP Dorchester Minerals
9.5xn/aUS$1.2b
TALO Talos Energy
3.7x19.9%US$1.7b

Price-To-Earnings vs Peers: TALO is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-11.3%
n/an/an/a

Price-To-Earnings vs Industry: TALO is good value based on its Price-To-Earnings Ratio (3.7x) compared to the US Oil and Gas industry average (7x)


Price to Earnings Ratio vs Fair Ratio

What is TALO'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.

TALO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio7.8x

Price-To-Earnings vs Fair Ratio: TALO is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.8x).


Share Price vs Fair Value

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

Below Fair Value: TALO ($20.44) is trading below our estimate of fair value ($85.06)

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


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 TALO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$20.44
US$28.80
+40.9%
21.4%US$40.00US$21.00n/a5
Jan ’24US$18.88
US$28.67
+51.8%
19.7%US$40.00US$21.00n/a6
Dec ’23US$19.04
US$28.83
+51.4%
18.8%US$40.00US$22.00n/a6
Nov ’23US$21.79
US$29.00
+33.1%
18.0%US$40.00US$23.00n/a6
Oct ’23US$16.65
US$28.20
+69.4%
22.1%US$40.00US$23.00n/a5
Sep ’23US$19.72
US$28.67
+45.4%
27.1%US$40.00US$19.00n/a6
Aug ’23US$17.85
US$28.33
+58.7%
27.2%US$40.00US$19.00n/a6
Jul ’23US$15.56
US$30.20
+94.1%
29.4%US$41.00US$19.00n/a5
Jun ’23US$22.77
US$30.00
+31.8%
28.8%US$40.00US$19.00n/a5
May ’23US$18.17
US$25.33
+39.4%
24.5%US$38.00US$20.00n/a6
Apr ’23US$17.05
US$20.60
+20.8%
34.3%US$34.00US$15.00n/a5
Mar ’23US$17.14
US$18.58
+8.4%
21.9%US$25.00US$12.50n/a6
Feb ’23US$11.29
US$18.75
+66.1%
23.1%US$26.00US$12.50n/a6
Jan ’23US$9.80
US$19.00
+93.9%
19.7%US$24.00US$14.00US$18.886
Dec ’22US$9.48
US$19.57
+106.4%
19.5%US$25.00US$14.00US$19.047
Nov ’22US$13.65
US$18.57
+36.1%
19.9%US$25.00US$14.00US$21.797
Oct ’22US$14.46
US$18.00
+24.5%
12.9%US$22.00US$15.00US$16.657
Sep ’22US$12.26
US$18.71
+52.6%
10.6%US$22.00US$15.00US$19.727
Aug ’22US$11.54
US$18.57
+60.9%
10.3%US$22.00US$15.00US$17.857
Jul ’22US$16.40
US$18.71
+14.1%
9.8%US$22.00US$16.00US$15.567
Jun ’22US$14.85
US$17.33
+16.7%
14.4%US$21.00US$13.00US$22.776
May ’22US$11.19
US$16.71
+49.4%
16.5%US$21.00US$13.00US$18.177
Apr ’22US$12.92
US$16.71
+29.4%
15.2%US$21.00US$13.00US$17.057
Mar ’22US$10.90
US$14.43
+32.4%
20.6%US$19.00US$11.00US$17.147
Feb ’22US$8.58
US$14.00
+63.2%
17.9%US$19.00US$11.00US$11.297
Jan ’22US$8.24
US$13.43
+63.0%
18.6%US$19.00US$11.00US$9.807

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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