EC Relative Valuation
EC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EC is overvalued; if below, it's undervalued.
Historical Valuation
Ecopetrol SA (EC) is now in the Fair zone, suggesting that its current forward PE ratio of 5.46 is considered Fairly compared with the five-year average of 5.77. The fair price of Ecopetrol SA (EC) is between 9.89 to 15.34 according to relative valuation methord.
Relative Value
Fair Zone
9.89-15.34
Current Price：10.13
Fair
7.28
PE
1Y
3Y
5Y
Trailing
Forward
5.00
EV/EBITDA
Ecopetrol SA. (EC) has a current EV/EBITDA of 5.00. The 5-year average EV/EBITDA is 3.71. The thresholds are as follows: Strongly Undervalued below 2.65, Undervalued between 2.65 and 3.18, Fairly Valued between 4.25 and 3.18, Overvalued between 4.25 and 4.78, and Strongly Overvalued above 4.78. The current Forward EV/EBITDA of 5.00 falls within the Strongly Overvalued range.
9.73
EV/EBIT
Ecopetrol SA. (EC) has a current EV/EBIT of 9.73. The 5-year average EV/EBIT is 5.12. The thresholds are as follows: Strongly Undervalued below 2.26, Undervalued between 2.26 and 3.69, Fairly Valued between 6.55 and 3.69, Overvalued between 6.55 and 7.98, and Strongly Overvalued above 7.98. The current Forward EV/EBIT of 9.73 falls within the Strongly Overvalued range.
0.79
PS
Ecopetrol SA. (EC) has a current PS of 0.79. The 5-year average PS is 0.76. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 0.54, Fairly Valued between 0.97 and 0.54, Overvalued between 0.97 and 1.18, and Strongly Overvalued above 1.18. The current Forward PS of 0.79 falls within the Historic Trend Line -Fairly Valued range.
2.38
P/OCF
Ecopetrol SA. (EC) has a current P/OCF of 2.38. The 5-year average P/OCF is 2.38. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 1.32, Fairly Valued between 3.44 and 1.32, Overvalued between 3.44 and 4.50, and Strongly Overvalued above 4.50. The current Forward P/OCF of 2.38 falls within the Historic Trend Line -Fairly Valued range.
7.86
P/FCF
Ecopetrol SA. (EC) has a current P/FCF of 7.86. The 5-year average P/FCF is 5.14. The thresholds are as follows: Strongly Undervalued below -1.10, Undervalued between -1.10 and 2.02, Fairly Valued between 8.26 and 2.02, Overvalued between 8.26 and 11.38, and Strongly Overvalued above 11.38. The current Forward P/FCF of 7.86 falls within the Historic Trend Line -Fairly Valued range.
Ecopetrol SA (EC) has a current Price-to-Book (P/B) ratio of 0.97. Compared to its 3-year average P/B ratio of 4.11 , the current P/B ratio is approximately -76.36% higher. Relative to its 5-year average P/B ratio of 3.17, the current P/B ratio is about -69.28% higher. Ecopetrol SA (EC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 15.26%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 11.53% , the current FCF yield is about -100.00% lower.
19.52
P/B
Median3y
4.11
Median5y
3.17
16.79
FCF Yield
Median3y
15.26
Median5y
11.53
Competitors Valuation Multiple
The average P/S ratio for EC's competitors is 0.69, providing a benchmark for relative valuation. Ecopetrol SA Corp (EC) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -11.80%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EC increased by 27.02% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 90.14 to 138.20.
The secondary factor is the Revenue Growth, contributed -11.80%to the performance.
Overall, the performance of EC in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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