Gran Tierra Valuation
| GTE Stock | CAD 7.13 0.24 3.26% |
At this time, the firm appears to be fairly valued. Gran Tierra Energy retains a regular Real Value of C$6.93 per share. The prevalent price of the firm is C$7.13. Our model calculates the value of Gran Tierra Energy from evaluating the firm fundamentals such as return on equity of 0.0079, and Return On Asset of 0.0497 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Gran Tierra's valuation include:
Fairly Valued
Today
Please note that Gran Tierra's price fluctuation is slightly risky at this time. Calculation of the real value of Gran Tierra Energy is based on 3 months time horizon. Increasing Gran Tierra's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Gran Tierra is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Gran Stock. However, Gran Tierra's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 7.13 | Real 6.93 | Hype 7.13 | Naive 8.26 |
The intrinsic value of Gran Tierra's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Gran Tierra's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Gran Tierra Energy helps investors to forecast how Gran stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Gran Tierra more accurately as focusing exclusively on Gran Tierra's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Gran Tierra's intrinsic value based on its ongoing forecasts of Gran Tierra's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Gran Tierra's closest peers.
Gran Tierra Cash |
|
Gran Valuation Trend
Knowing Gran Tierra's actual value is paramount for traders when making sound investment determinations. Using both Gran Tierra's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Gran Tierra Total Value Analysis
Gran Tierra Energy is currently forecasted to have takeover price of 1.2 B with market capitalization of 264.17 M, debt of 24.81 M, and cash on hands of 126.87 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Gran Tierra fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.2 B | 264.17 M | 24.81 M | 126.87 M |
Gran Tierra Investor Information
About 14.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.43. Some equities with similar Price to Book (P/B) outperform the market in the long run. Gran Tierra Energy has Price/Earnings To Growth (PEG) ratio of 0.23. The entity had not issued any dividends in recent years. The firm had 1:10 split on the 8th of May 2023. Based on the key measurements obtained from Gran Tierra's financial statements, Gran Tierra Energy may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter.Gran Tierra Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gran Tierra has an asset utilization ratio of 37.58 percent. This suggests that the Company is making C$0.38 for each dollar of assets. An increasing asset utilization means that Gran Tierra Energy is more efficient with each dollar of assets it utilizes for everyday operations.Gran Tierra Ownership Allocation
Gran Tierra Energy has a total of 35.89 Million outstanding shares. Over half of Gran Tierra's outstanding shares are owned by outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Gran Tierra Energy. Please watch out for any change in the institutional holdings of Gran Tierra as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Gran Tierra Profitability Analysis
The company reported the revenue of 621.85 M. Net Income was 3.22 M with profit before overhead, payroll, taxes, and interest of 401.05 M.About Gran Tierra Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Gran Tierra Energy. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gran Tierra Energy based exclusively on its fundamental and basic technical indicators. By analyzing Gran Tierra's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Gran Tierra's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gran Tierra. We calculate exposure to Gran Tierra's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Gran Tierra's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 391.2 M | 285.3 M | |
| Pretax Profit Margin | 0.19 | 0.20 | |
| Operating Profit Margin | 0.25 | 0.26 | |
| Net Loss | (0.01) | (0.01) | |
| Gross Profit Margin | 0.40 | 0.68 |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gran Tierra Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.