Montauk Renewables, Inc.

JSE:MKR Stock Report

Market Cap: R11.5b

Montauk Renewables Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: MKR (ZAR84.8) is trading below our estimate of fair value (ZAR210.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MKR. This is calculated by dividing MKR's market cap by their current earnings.
What is MKR's PE Ratio?
PE Ratio27.5x
EarningsUS$22.99m
Market CapUS$631.90m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.6x
EA Energy Absolute
6.7x-11.2%฿20.1b
GUNKUL Gunkul Engineering
15.9x17.4%฿19.8b
182 Concord New Energy Group
4.3x14.1%HK$4.1b
EGR1T Enefit Green
11.6x-6.2%€716.2m
MKR Montauk Renewables
27.5x1.1%R631.9m

Price-To-Earnings vs Peers: MKR is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the peer average (9.6x).

Price to Earnings Ratio vs Industry

How does MKR's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MKR 27.5xIndustry Avg. 15.1xNo. of Companies43PE01224364860+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MKR is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the Global Renewable Energy industry average (15.1x).

Price to Earnings Ratio vs Fair Ratio

What is MKR'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.

MKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MKR'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?

The above table shows the analyst MKR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR84.80
R107.52
+26.8%
4.6%R113.18R99.60n/a4
Nov ’25R98.00
R110.55
+12.8%
6.5%R122.59R105.07n/a4
Oct ’25R90.50
R120.55
+33.2%
11.4%R141.57R106.17n/a4
Sep ’25R86.31
R120.55
+39.7%
11.4%R141.57R106.17n/a4
Aug ’25R108.00
R126.90
+17.5%
13.3%R143.74R107.81n/a4
Jul ’25R104.00
R129.88
+24.9%
15.4%R149.77R107.65n/a4
Jun ’25R100.00
R123.75
+23.8%
17.9%R145.32R95.37n/a4
May ’25R68.29
R133.25
+95.1%
17.5%R152.29R95.18n/a4
Apr ’25R79.66
R158.73
+99.3%
11.5%R180.05R132.67n/a4
Mar ’25R114.93
R173.13
+50.6%
8.1%R189.73R151.79n/a4
Feb ’25R127.26
R173.13
+36.0%
8.1%R189.73R151.79n/a4
Jan ’25R172.00
R166.36
-3.3%
8.1%R182.31R145.85n/a4
Dec ’24R175.00
R166.36
-4.9%
8.1%R182.31R145.85n/a4
Nov ’24R192.98
R162.38
-15.9%
12.7%R183.64R125.65R98.005
Oct ’24R178.50
R157.15
-12.0%
12.4%R179.87R123.07R90.505
Sep ’24R185.00
R154.24
-16.6%
13.3%R180.34R123.39R86.314
Aug ’24R160.00
R129.48
-19.1%
18.2%R166.78R105.34R108.004
Jul ’24R138.44
R124.97
-9.7%
8.3%R138.85R111.08R104.004
Jun ’24R140.00
R132.01
-5.7%
9.1%R144.89R115.91R100.003
May ’24R111.11
R120.48
+8.4%
18.7%R144.58R90.36R68.293
Apr ’24R137.90
R135.80
-1.5%
23.2%R166.66R92.59R79.663
Mar ’24R178.00
R183.02
+2.8%
29.0%R257.37R137.26R114.933
Feb ’24R189.00
R183.02
-3.2%
29.0%R257.37R137.26R127.263
Jan ’24R191.80
R183.02
-4.6%
29.0%R257.37R137.26R172.003
Dec ’23R202.92
R199.79
-1.5%
30.4%R260.60R138.98R175.002
Nov ’23R276.97
R217.08
-21.6%
37.3%R297.95R136.21R192.982

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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