TALO Valuation

Talos Energy Inc

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8.690

+0.14(1.637%)1D

Overview
Forecast
Valuation
Earnings

TALO Relative Valuation

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

Historical Valuation

Talos Energy Inc (TALO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.84 is considered Undervalued compared with the five-year average of -11.87. The fair price of Talos Energy Inc (TALO) is between 9.33 to 12.40 according to relative valuation methord. Compared to the current price of 8.49 USD , Talos Energy Inc is Undervalued By 9.04%.

Relative Value

Fair Zone

9.33-12.40

Current Price：8.49

9.04%

Undervalued

-5.35

Trailing

Forward

2.33

EV/EBITDA

Talos Energy Inc. (TALO) has a current EV/EBITDA of 2.33. The 5-year average EV/EBITDA is 2.69. The thresholds are as follows: Strongly Undervalued below 1.98, Undervalued between 1.98 and 2.33, Fairly Valued between 3.04 and 2.33, Overvalued between 3.04 and 3.39, and Strongly Overvalued above 3.39. The current Forward EV/EBITDA of 2.33 falls within the Undervalued range.

-11.83

EV/EBIT

Talos Energy Inc. (TALO) has a current EV/EBIT of -11.83. The 5-year average EV/EBIT is 5.14. The thresholds are as follows: Strongly Undervalued below -36.47, Undervalued between -36.47 and -15.66, Fairly Valued between 25.95 and -15.66, Overvalued between 25.95 and 46.75, and Strongly Overvalued above 46.75. The current Forward EV/EBIT of -11.83 falls within the Historic Trend Line -Fairly Valued range.

0.83

Talos Energy Inc. (TALO) has a current PS of 0.83. The 5-year average PS is 0.94. The thresholds are as follows: Strongly Undervalued below 0.57, Undervalued between 0.57 and 0.76, Fairly Valued between 1.13 and 0.76, Overvalued between 1.13 and 1.32, and Strongly Overvalued above 1.32. The current Forward PS of 0.83 falls within the Historic Trend Line -Fairly Valued range.

1.69

P/OCF

Talos Energy Inc. (TALO) has a current P/OCF of 1.69. The 5-year average P/OCF is 1.86. The thresholds are as follows: Strongly Undervalued below 1.12, Undervalued between 1.12 and 1.49, Fairly Valued between 2.23 and 1.49, Overvalued between 2.23 and 2.59, and Strongly Overvalued above 2.59. The current Forward P/OCF of 1.69 falls within the Historic Trend Line -Fairly Valued range.

4.63

P/FCF

Talos Energy Inc. (TALO) has a current P/FCF of 4.63. The 5-year average P/FCF is 4.21. The thresholds are as follows: Strongly Undervalued below -17.44, Undervalued between -17.44 and -6.62, Fairly Valued between 15.04 and -6.62, Overvalued between 15.04 and 25.86, and Strongly Overvalued above 25.86. The current Forward P/FCF of 4.63 falls within the Historic Trend Line -Fairly Valued range.

Talos Energy Inc (TALO) has a current Price-to-Book (P/B) ratio of 0.57. Compared to its 3-year average P/B ratio of 0.89 , the current P/B ratio is approximately -35.84% higher. Relative to its 5-year average P/B ratio of 1.05, the current P/B ratio is about -45.87% higher. Talos Energy Inc (TALO) has a Forward Free Cash Flow (FCF) yield of approximately 46.74%. Compared to its 3-year average FCF yield of 14.39%, the current FCF yield is approximately 224.72% lower. Relative to its 5-year average FCF yield of 9.24% , the current FCF yield is about 405.81% lower.

0.59

P/B

Median3y

0.89

Median5y

1.05

47.53

FCF Yield

Median3y

14.39

Median5y

9.24

Competitors Valuation Multiple

The average P/S ratio for TALO's competitors is 1.37, providing a benchmark for relative valuation. Talos Energy Inc Corp (TALO) exhibits a P/S ratio of 0.83, which is -39.56% above the industry average. Given its robust revenue growth of -22.66%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Expro Group Holdings NV

Granite Ridge Resources Inc

1.27

20.48%

715.30M

Performance Decomposition

Market capitalization of TALO decreased by 24.24% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.41 to -8.87.

The secondary factor is the Revenue Growth, contributed -22.66%to the performance.

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

-22.66%

549.17M → 424.72M

Revenue Growth

-2045.78%

2.25 → -43.78

Margin Expansion

2044.20%

-0.41 → -8.87

P/E Change

-24.24%