KOS Valuation

Kosmos Energy Ltd

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1.755

+0.055(3.235%)1D

Overview
Forecast
Valuation
Earnings

KOS Relative Valuation

KOS'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, KOS is overvalued; if below, it's undervalued.

Historical Valuation

Kosmos Energy Ltd (KOS) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.52 is considered Undervalued compared with the five-year average of -4.25. The fair price of Kosmos Energy Ltd (KOS) is between 2.61 to 4.86 according to relative valuation methord. Compared to the current price of 1.70 USD , Kosmos Energy Ltd is Undervalued By 34.87%.

Relative Value

Fair Zone

2.61-4.86

Current Price：1.70

34.87%

Undervalued

-12.83

Trailing

Forward

3.83

EV/EBITDA

Kosmos Energy Ltd. (KOS) has a current EV/EBITDA of 3.83. The 5-year average EV/EBITDA is 3.60. The thresholds are as follows: Strongly Undervalued below 2.55, Undervalued between 2.55 and 3.08, Fairly Valued between 4.13 and 3.08, Overvalued between 4.13 and 4.66, and Strongly Overvalued above 4.66. The current Forward EV/EBITDA of 3.83 falls within the Historic Trend Line -Fairly Valued range.

10.86

EV/EBIT

Kosmos Energy Ltd. (KOS) has a current EV/EBIT of 10.86. The 5-year average EV/EBIT is 5.33. The thresholds are as follows: Strongly Undervalued below -25.70, Undervalued between -25.70 and -10.18, Fairly Valued between 20.84 and -10.18, Overvalued between 20.84 and 36.35, and Strongly Overvalued above 36.35. The current Forward EV/EBIT of 10.86 falls within the Historic Trend Line -Fairly Valued range.

0.52

Kosmos Energy Ltd. (KOS) has a current PS of 0.52. The 5-year average PS is 1.15. The thresholds are as follows: Strongly Undervalued below 0.28, Undervalued between 0.28 and 0.72, Fairly Valued between 1.58 and 0.72, Overvalued between 1.58 and 2.02, and Strongly Overvalued above 2.02. The current Forward PS of 0.52 falls within the Undervalued range.

1.37

P/OCF

Kosmos Energy Ltd. (KOS) has a current P/OCF of 1.37. The 5-year average P/OCF is 2.47. The thresholds are as follows: Strongly Undervalued below 0.88, Undervalued between 0.88 and 1.68, Fairly Valued between 3.27 and 1.68, Overvalued between 3.27 and 4.06, and Strongly Overvalued above 4.06. The current Forward P/OCF of 1.37 falls within the Undervalued range.

5.10

P/FCF

Kosmos Energy Ltd. (KOS) has a current P/FCF of 5.10. The 5-year average P/FCF is -6.03. The thresholds are as follows: Strongly Undervalued below -95.29, Undervalued between -95.29 and -50.66, Fairly Valued between 38.61 and -50.66, Overvalued between 38.61 and 83.24, and Strongly Overvalued above 83.24. The current Forward P/FCF of 5.10 falls within the Historic Trend Line -Fairly Valued range.

Kosmos Energy Ltd (KOS) has a current Price-to-Book (P/B) ratio of 0.80. Compared to its 3-year average P/B ratio of 2.60 , the current P/B ratio is approximately -69.23% higher. Relative to its 5-year average P/B ratio of 3.02, the current P/B ratio is about -73.55% higher. Kosmos Energy Ltd (KOS) has a Forward Free Cash Flow (FCF) yield of approximately -29.46%. Compared to its 3-year average FCF yield of -7.87%, the current FCF yield is approximately 274.20% lower. Relative to its 5-year average FCF yield of -9.75% , the current FCF yield is about 202.08% lower.

0.80

P/B

Median3y

2.60

Median5y

3.02

-29.46

FCF Yield

Median3y

-7.87

Median5y

-9.75

Competitors Valuation Multiple

The average P/S ratio for KOS's competitors is 1.01, providing a benchmark for relative valuation. Kosmos Energy Ltd Corp (KOS) exhibits a P/S ratio of 0.52, which is -47.92% above the industry average. Given its robust revenue growth of -12.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Infinity Natural Resources Inc

Diversified Energy Company PLC

0.70

1.18B

REPX.A

Riley Exploration Permian Inc

Performance Decomposition

Market capitalization of KOS decreased by 65.09% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.56 to -4.94.

The secondary factor is the Revenue Growth, contributed -12.92%to the performance.

Overall, the performance of KOS in the past 1 year is driven by P/E Change. Which is more unsustainable.

-12.92%

450.90M → 392.64M

Revenue Growth

-268.55%

13.26 → -22.35

Margin Expansion

216.38%

-1.56 → -4.94

P/E Change

-65.09%