Hammerhead Energy Inc
TSX:HHRS
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EV/S
Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.
Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.
Valuation Scenarios
If EV/S returns to its 3-Year Average (12.2), the stock would be worth CA$20.24 (0% upside from current price).
| Scenario | EV/S Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.2 | CA$20.24 |
0%
|
| 3-Year Average | 12.2 | CA$20.24 |
+0%
|
| 5-Year Average | 12.2 | CA$20.24 |
+0%
|
| Industry Average | 2.2 | CA$3.72 |
-82%
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| Country Average | 3 | CA$5.04 |
-75%
|
Forward EV/S
Today’s price vs future revenue
| Today's Enterprise Value | Revenue | Forward EV/S | ||
|---|---|---|---|---|
|
CA$4.2B
|
/ |
Jul 2023
CA$346.6m
|
= |
|
|
CA$4.2B
|
/ |
Dec 2023
CA$818.5m
|
= |
|
|
CA$4.2B
|
/ |
Dec 2024
CA$882.4m
|
= |
|
|
CA$4.2B
|
/ |
Dec 2025
CA$979.4m
|
= |
|
Forward EV/S shows whether today’s EV/S still looks high or low once future revenue are taken into account.
Peer Comparison
| Market Cap | EV/S | P/E | ||||
|---|---|---|---|---|---|---|
| US |
H
|
Hammerhead Energy Inc
TSX:HHRS
|
3.9B CAD | 12.2 | -34.4 | |
| CN |
C
|
CNOOC Ltd
SSE:600938
|
1.1T CNY | 2.2 | 8.8 | |
| US |
|
Conocophillips
NYSE:COP
|
149.1B USD | 2.8 | 19.1 | |
| CA |
|
Canadian Natural Resources Ltd
TSX:CNQ
|
127.9B CAD | 3.8 | 12.1 | |
| US |
|
EOG Resources Inc
NYSE:EOG
|
71.6B USD | 3.4 | 14.6 | |
| PK |
O
|
Oil and Gas Development Co Ltd
LSE:37OC
|
59.6B USD | 42.2 | 103.8 | |
| US |
|
Diamondback Energy Inc
NASDAQ:FANG
|
55.9B USD | 4.7 | 34.3 | |
| US |
|
Hess Corp
NYSE:HES
|
46.1B USD | 4.3 | 20.7 | |
| US |
P
|
Pioneer Natural Resources Co
LSE:0KIX
|
46B USD | 2.6 | 9.4 | |
| AU |
|
Woodside Energy Group Ltd
ASX:WDS
|
61.1B AUD | 3.8 | 15.3 | |
| US |
V
|
Venture Global Inc
NYSE:VG
|
38.5B USD | 4.5 | 13.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.6 |
| Median | 3 |
| 70th Percentile | 5.3 |
| Max | 4 613 320.1 |
Other Multiples
Hammerhead Energy Inc
Glance View
Hammerhead Energy Inc. is carving its niche in the dynamic world of energy production with a strategic focus on unconventional oil and gas resources. Founded on the belief that innovation and sustainable practices can redefine energy extraction, the company has leveraged cutting-edge technologies to tap into the vast potential of hard-to-reach resources, primarily targeting shale formations. By employing advanced drilling techniques and enhanced recovery methods, Hammerhead Energy is able to maximize the extraction of hydrocarbons, while simultaneously minimizing the environmental footprint of its operations. Through this sophisticated approach, the company efficiently accesses reserves that were previously deemed inaccessible or uneconomical, thus unlocking significant value. The company's revenue model is straightforward yet robust, rooted in the sale of crude oil and natural gas commodities. By securing long-term contracts and leveraging a flexible transportation infrastructure, Hammerhead Energy ensures a steady flow of resources from the wellhead to the marketplace. This approach not only stabilizes revenue streams but also positions the company competitively amid fluctuating market conditions. Despite the inherent volatility in the energy markets, Hammerhead's operational efficiency and strategic hedging practices enable it to sustain profitability while navigating industry headwinds. In a sector characterized by rapid technological advancements and shifting regulatory landscapes, Hammerhead Energy Inc. stands out as a forward-thinking player committed to delivering energy solutions that align with both economic and environmental imperatives.