As of July 16, 2025, JKX Oil and Gas PLC's estimated intrinsic value ranges from $77.36 to $237.64 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $149.92 | +261.3% |
| Discounted Cash Flow (5Y) | $144.64 | +248.5% |
| Dividend Discount Model (Multi-Stage) | $96.12 | +131.6% |
| Dividend Discount Model (Stable) | $237.64 | +472.6% |
| Earnings Power Value | $77.36 | +86.4% |
Is JKX Oil and Gas PLC (JKX.L) undervalued or overvalued?
With the current market price at $41.50, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate JKX Oil and Gas PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.88 | 1.09 |
| Cost of equity | 7.6% | 10.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 12.1% | 16.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 7.6% | 10.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $176 | $261M | 67.1% |
| 10-Year Growth | $183 | $271M | 44.8% |
| 5-Year EBITDA | $103 | $138M | 37.9% |
| 10-Year EBITDA | $132 | $187M | 19.7% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $11M |
| Discount Rate (WACC) | 10.8% - 7.6% |
| Enterprise Value | $102M - $144M |
| Net Debt | $(36)M |
| Equity Value | $137M - $180M |
| Outstanding Shares | 2M |
| Fair Value | $82 - $107 |
| Selected Fair Value | $77.36 |
| Metric | Value |
|---|---|
| Market Capitalization | $70M |
| Enterprise Value | $43M |
| Trailing P/E | 1.89 |
| Forward P/E | 4.34 |
| Trailing EV/EBITDA | 1.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $44.98 |
| Discounted Cash Flow (5Y) | 25% | $36.16 |
| Dividend Discount Model (Multi-Stage) | 20% | $19.22 |
| Dividend Discount Model (Stable) | 15% | $35.65 |
| Earnings Power Value | 10% | $7.74 |
| Weighted Average | 100% | $143.74 |
Based on our comprehensive valuation analysis, JKX Oil and Gas PLC's intrinsic value is $143.74, which is approximately 246.4% above the current market price of $41.50.
Key investment considerations:
Given these factors, we believe JKX Oil and Gas PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.