Montauk Renewables, Inc.

NasdaqCM:MNTK Stock Report

Market Cap: US$566.3m

Montauk Renewables Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 MNTK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MNTK ($3.97) is trading below our estimate of fair value ($15.39)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MNTK. This is calculated by dividing MNTK's market cap by their current earnings.
What is MNTK's PE Ratio?
PE Ratio27.5x
EarningsUS$22.99m
Market CapUS$566.28m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MNTK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.3x
AMPS Altus Power
17.8x-89.7%US$619.2m
AY Atlantica Sustainable Infrastructure
85.8x38.2%US$2.6b
ORA Ormat Technologies
40.5x11.4%US$4.8b
CWEN.A Clearway Energy
25.3x23.0%US$5.5b
MNTK Montauk Renewables
24.6x2.0%US$576.3m

Price-To-Earnings vs Peers: MNTK is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (42.3x).

Price to Earnings Ratio vs Industry

How does MNTK's PE Ratio compare vs other companies in the North American Renewable Energy Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MNTK 27.5xIndustry Avg. 14.5xNo. of Companies4PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MNTK is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the Global Renewable Energy industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is MNTK'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.

MNTK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.5x
Fair PE Ratio24.1x

Price-To-Earnings vs Fair Ratio: MNTK is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

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 MNTK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.43
US$5.94
+34.0%
4.6%US$6.25US$5.50n/a4
Nov ’25US$5.53
US$6.31
+14.2%
6.5%US$7.00US$6.00n/a4
Oct ’25US$5.16
US$6.81
+32.0%
11.4%US$8.00US$6.00n/a4
Sep ’25US$4.69
US$6.81
+45.3%
11.4%US$8.00US$6.00n/a4
Aug ’25US$5.79
US$7.06
+22.0%
13.3%US$8.00US$6.00n/a4
Jul ’25US$5.32
US$6.94
+30.4%
15.4%US$8.00US$5.75n/a4
Jun ’25US$5.36
US$6.81
+27.1%
17.9%US$8.00US$5.25n/a4
May ’25US$3.69
US$7.00
+89.7%
17.5%US$8.00US$5.00n/a4
Apr ’25US$4.15
US$8.38
+101.8%
11.5%US$9.50US$7.00n/a4
Mar ’25US$5.75
US$9.13
+58.7%
8.1%US$10.00US$8.00n/a4
Feb ’25US$7.01
US$9.13
+30.2%
8.1%US$10.00US$8.00n/a4
Jan ’25US$8.91
US$9.13
+2.4%
8.1%US$10.00US$8.00n/a4
Dec ’24US$9.59
US$9.13
-4.8%
8.1%US$10.00US$8.00n/a4
Nov ’24US$10.00
US$8.40
-16.0%
12.7%US$9.50US$6.50US$5.535
Oct ’24US$9.11
US$8.30
-8.9%
12.4%US$9.50US$6.50US$5.165
Sep ’24US$9.69
US$8.13
-16.2%
13.3%US$9.50US$6.50US$4.694
Aug ’24US$8.61
US$7.38
-14.3%
18.2%US$9.50US$6.00US$5.794
Jul ’24US$7.44
US$6.75
-9.3%
8.3%US$7.50US$6.00US$5.324
Jun ’24US$6.91
US$6.83
-1.1%
9.1%US$7.50US$6.00US$5.363
May ’24US$6.61
US$6.67
+0.9%
18.7%US$8.00US$5.00US$3.693
Apr ’24US$7.87
US$7.33
-6.8%
23.2%US$9.00US$5.00US$4.153
Mar ’24US$9.78
US$10.67
+9.1%
29.0%US$15.00US$8.00US$5.753
Feb ’24US$11.12
US$10.67
-4.1%
29.0%US$15.00US$8.00US$7.013
Jan ’24US$11.03
US$10.67
-3.3%
29.0%US$15.00US$8.00US$8.913
Dec ’23US$11.14
US$11.50
+3.2%
30.4%US$15.00US$8.00US$9.592
Nov ’23US$14.95
US$12.75
-14.7%
37.3%US$17.50US$8.00US$10.002

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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