Antero Midstream Partners LP owns, operates, and develops midstream energy assets which collect natural gas, and oil and condensate from wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio. The company was founded in 2013 and is based in Denver, Colorado.
AM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Antero Midstream Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Antero Midstream Corp ranked in the 96th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 5878.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Antero Midstream Corp, consider:
Its compound free cash flow growth rate, as measured over the past 3.02 years, is 1.87% -- higher than 95.58% of stocks in our DCF forecasting set.
Antero Midstream Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.07. This coverage rate is greater than that of merely 10.18% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Antero Midstream Corp experienced a tax rate of about 22% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 86.04% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AM, try PBFX, GPP, SNMP, PTEN, and DNR.
Antero Resources (AR) has long had some very unconventional ways to make money in this business. Wall Street has long valued continuing operations as the main source for valuing the stock. A bunch of "one time" or "non-repeating" items never made the radar of Mr. Market. Mr. Market has always...
In this article you are going to find out whether hedge funds think Antero Midstream Corp (NYSE:AM) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]