SM Relative Valuation
SM'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, SM is overvalued; if below, it's undervalued.
Historical Valuation
SM Energy Co (SM) is now in the Fair zone, suggesting that its current forward PS ratio of 18.39 is considered Fairly compared with the five-year average of 10.27. The fair price of SM Energy Co (SM) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：19.10
Fair
4.65
PE
1Y
3Y
5Y
Trailing
Forward
2.29
EV/EBITDA
SM Energy Co. (SM) has a current EV/EBITDA of 2.29. The 5-year average EV/EBITDA is 3.08. The thresholds are as follows: Strongly Undervalued below 2.07, Undervalued between 2.07 and 2.58, Fairly Valued between 3.59 and 2.58, Overvalued between 3.59 and 4.09, and Strongly Overvalued above 4.09. The current Forward EV/EBITDA of 2.29 falls within the Undervalued range.
6.55
EV/EBIT
SM Energy Co. (SM) has a current EV/EBIT of 6.55. The 5-year average EV/EBIT is 10.75. The thresholds are as follows: Strongly Undervalued below -21.72, Undervalued between -21.72 and -5.48, Fairly Valued between 26.99 and -5.48, Overvalued between 26.99 and 43.22, and Strongly Overvalued above 43.22. The current Forward EV/EBIT of 6.55 falls within the Historic Trend Line -Fairly Valued range.
18.39
PS
SM Energy Co. (SM) has a current PS of 18.39. The 5-year average PS is 1.64. The thresholds are as follows: Strongly Undervalued below -2.33, Undervalued between -2.33 and -0.35, Fairly Valued between 3.62 and -0.35, Overvalued between 3.62 and 5.60, and Strongly Overvalued above 5.60. The current Forward PS of 18.39 falls within the Strongly Overvalued range.
1.17
P/OCF
SM Energy Co. (SM) has a current P/OCF of 1.17. The 5-year average P/OCF is 2.28. The thresholds are as follows: Strongly Undervalued below 1.18, Undervalued between 1.18 and 1.73, Fairly Valued between 2.83 and 1.73, Overvalued between 2.83 and 3.38, and Strongly Overvalued above 3.38. The current Forward P/OCF of 1.17 falls within the Strongly Undervalued range.
3.24
P/FCF
SM Energy Co. (SM) has a current P/FCF of 3.24. The 5-year average P/FCF is 6.07. The thresholds are as follows: Strongly Undervalued below 1.78, Undervalued between 1.78 and 3.93, Fairly Valued between 8.22 and 3.93, Overvalued between 8.22 and 10.36, and Strongly Overvalued above 10.36. The current Forward P/FCF of 3.24 falls within the Undervalued range.
SM Energy Co (SM) has a current Price-to-Book (P/B) ratio of 0.45. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately -60.64% higher. Relative to its 5-year average P/B ratio of 1.36, the current P/B ratio is about -67.05% higher. SM Energy Co (SM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -4.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.13% , the current FCF yield is about -100.00% lower.
0.45
P/B
Median3y
1.14
Median5y
1.36
-72.29
FCF Yield
Median3y
-4.01
Median5y
3.13
Competitors Valuation Multiple
The average P/S ratio for SM's competitors is 13.99, providing a benchmark for relative valuation. SM Energy Co Corp (SM) exhibits a P/S ratio of 18.39, which is 31.43% above the industry average. Given its robust revenue growth of 26.10%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SM decreased by 59.31% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 643.61M to 811.59M.
The secondary factor is the P/E Change, contributed -36.55%to the performance.
Overall, the performance of SM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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