SM Valuation

SM Energy Co

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20.890

+0.35(1.704%)1D

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 Overvalued zone, suggesting that its current forward PS ratio of 20.89 is considered Overvalued compared with the five-year average of 10.19. The fair price of SM Energy Co (SM) is between 3.42 to 5.29 according to relative valuation methord. Compared to the current price of 20.89 USD , SM Energy Co is Overvalued By 295.03%.

Relative Value

Fair Zone

3.42-5.29

Current Price：20.89

295.03%

Overvalued

5.11

Trailing

Forward

2.42

EV/EBITDA

SM Energy Co. (SM) has a current EV/EBITDA of 2.42. The 5-year average EV/EBITDA is 3.08. The thresholds are as follows: Strongly Undervalued below 2.08, Undervalued between 2.08 and 2.58, Fairly Valued between 3.58 and 2.58, Overvalued between 3.58 and 4.09, and Strongly Overvalued above 4.09. The current Forward EV/EBITDA of 2.42 falls within the Undervalued range.

6.68

EV/EBIT

SM Energy Co. (SM) has a current EV/EBIT of 6.68. The 5-year average EV/EBIT is 11.51. The thresholds are as follows: Strongly Undervalued below -24.15, Undervalued between -24.15 and -6.32, Fairly Valued between 29.34 and -6.32, Overvalued between 29.34 and 47.17, and Strongly Overvalued above 47.17. The current Forward EV/EBIT of 6.68 falls within the Historic Trend Line -Fairly Valued range.

20.89

SM Energy Co. (SM) has a current PS of 20.89. The 5-year average PS is 1.47. The thresholds are as follows: Strongly Undervalued below -0.87, Undervalued between -0.87 and 0.30, Fairly Valued between 2.64 and 0.30, Overvalued between 2.64 and 3.81, and Strongly Overvalued above 3.81. The current Forward PS of 20.89 falls within the Strongly Overvalued range.

1.27

P/OCF

SM Energy Co. (SM) has a current P/OCF of 1.27. The 5-year average P/OCF is 2.27. The thresholds are as follows: Strongly Undervalued below 1.12, Undervalued between 1.12 and 1.69, Fairly Valued between 2.84 and 1.69, Overvalued between 2.84 and 3.42, and Strongly Overvalued above 3.42. The current Forward P/OCF of 1.27 falls within the Undervalued range.

3.40

P/FCF

SM Energy Co. (SM) has a current P/FCF of 3.40. The 5-year average P/FCF is 6.04. The thresholds are as follows: Strongly Undervalued below 1.69, Undervalued between 1.69 and 3.87, Fairly Valued between 8.22 and 3.87, Overvalued between 8.22 and 10.39, and Strongly Overvalued above 10.39. The current Forward P/FCF of 3.40 falls within the Undervalued range.

SM Energy Co (SM) has a current Price-to-Book (P/B) ratio of 0.52. Compared to its 3-year average P/B ratio of 1.16 , the current P/B ratio is approximately -55.00% higher. Relative to its 5-year average P/B ratio of 1.35, the current P/B ratio is about -61.43% higher. SM Energy Co (SM) has a Forward Free Cash Flow (FCF) yield of approximately -63.05%. Compared to its 3-year average FCF yield of -2.66%, the current FCF yield is approximately 2269.44% lower. Relative to its 5-year average FCF yield of 4.19% , the current FCF yield is about -1605.77% lower.

0.52

P/B

Median3y

1.16

Median5y

1.35

-63.05

FCF Yield

Median3y

-2.66

Median5y

4.19

Competitors Valuation Multiple

The average P/S ratio for SM's competitors is 13.80, providing a benchmark for relative valuation. SM Energy Co Corp (SM) exhibits a P/S ratio of 20.89, which is 51.35% above the industry average. Given its robust revenue growth of 24.96%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Northern Oil and Gas Inc

Expro Group Holdings NV

Performance Decomposition

Market capitalization of SM decreased by 53.77% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 634.56M to 792.94M.

The secondary factor is the Margin Expansion, contributed -23.26%to the performance.

Overall, the performance of SM in the past 1 year is driven by Revenue Growth. Which is more sustainable.

24.96%

634.56M → 792.94M

Revenue Growth

-23.26%

33.14 → 25.43

Margin Expansion

-55.47%

6.63 → 2.95

P/E Change

-53.77%