Evolution Petroleum Corporation, Inc. (EPM) Company Bio
Evolution Petroleum Corporation engages primarily in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company was founded in 2003 and is based in Houston, Texas.
EPM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Evolution Petroleum Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Evolution Petroleum Corp ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Evolution Petroleum Corp ended up being:
The company has produced more trailing twelve month cash flow than only 9.31% of its sector Energy.
EPM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 64.32% of tickers in our DCF set.
Evolution Petroleum Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Evolution Petroleum Corp? See MMP, CRBO, TGA, VLO, and COG.
Thank you, and good afternoon, and welcome to Evolution Petroleum's earnings call for our fiscal third quarter ended March 31, 2020. If you would wish to listen to a replay of today's call, it will be available shortly by going to the company's website for a recorded replay until June 7, 2020.