As of June 21, 2025, New Source Energy Partners LP's estimated intrinsic value ranges from $148.98 to $148.98 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Earnings Power Value | $148.98 | +1489807600.0% |
Is New Source Energy Partners LP (NSLPQ) undervalued or overvalued?
With the current market price at $0.00, 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 New Source Energy Partners LP'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.79 | 1.15 |
| Cost of equity | 7.5% | 11.3% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.3% | 8.2% |
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $25M |
| Discount Rate (WACC) | 8.2% - 6.3% |
| Enterprise Value | $306M - $398M |
| Net Debt | $73M |
| Equity Value | $233M - $325M |
| Outstanding Shares | 19M |
| Fair Value | $12 - $17 |
| Selected Fair Value | $148.98 |
| Metric | Value |
|---|---|
| Market Capitalization | $0M |
| Enterprise Value | $73M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 2.15 |
| Current Dividend Yield | 9972237000.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 3991083.80 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Earnings Power Value | 100% | $14.90 |
| Weighted Average | 100% | $148.98 |
Based on our comprehensive valuation analysis, New Source Energy Partners LP's weighted average intrinsic value is $148.98, which is approximately 1489807600.0% above the current market price of $0.00.
Key investment considerations:
Given these factors, we believe New Source Energy Partners LP is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.