ASX:AVD PE PEG Gauge Jan 23rd 18
The oil and gas industry is trading at a PE ratio of 11.2x, lower than the rest of the Australian stock market PE of 17.9x. This illustrates a somewhat under-priced sector compared to the rest of the market. Though, the industry returned a similar 12.16% on equities compared to the market’s 11.86%, potentially illustrative of a turnaround. Since Antilles Oil and Gas’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Antilles Oil and Gas’s value is to assume the stock should be relatively in-line with its industry.
Next Steps:
Antilles Oil and Gas recently delivered an industry-beating growth rate in earnings, which is a positive for shareholders. If the stock has been on your watchlist for a while, now may be the time to buy, if you like its ability to deliver growth and are not highly concentrated in the energy industry. However, before you make a decision on the stock, I suggest you look at Antilles Oil and Gas’s fundamentals in order to build a holistic investment thesis.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.