Texas Pacific Land Valuation

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

TPL ($1600.09) is trading above our estimate of [[fair value]] ($455.89)

Is TPL 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-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 TPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TPL ($1600.09) is trading above our estimate of fair value ($455.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TPL. This is calculated by dividing TPL's market cap by their current earnings.
What is TPL's PE Ratio?
PE Ratio	81.9x
Earnings	US$448.71m
Market Cap	US$36.76b

TPL 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/Revenue	52.8x
Enterprise Value/EBITDA	66x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	14.1x
HES Hess	17.1x	16.1%	US$45.2b
FANG Diamondback Energy	16.2x	11.1%	US$51.9b
DVN Devon Energy	7.3x	-4.2%	US$24.9b
CTRA Coterra Energy	15.9x	30.2%	US$19.7b
TPL Texas Pacific Land	81.9x	n/a	US$36.8b

Price-To-Earnings vs Peers: TPL is expensive based on its Price-To-Earnings Ratio (81.9x) compared to the peer average (14.1x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
AXAS Abraxas Petroleum	0.09x	n/a	US$10.27m
BYRO.F Byron Energy	0.03x	-10.3%	US$312.17k
USOP.Y U.S. Oil and Gas	n/a	n/a	US$6.00

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TPL is expensive based on its Price-To-Earnings Ratio (81.9x) compared to the US Oil and Gas industry average (11.6x).

Price to Earnings Ratio vs Fair Ratio

What is TPL'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.

TPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	81.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TPL's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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