As of May 29, 2025, TGS NOPEC Geophysical Company ASA's estimated intrinsic value ranges from $37.08 to $348.55 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $37.08 | -56.3% |
| Dividend Discount Model (Multi-Stage) | $280.08 | +229.9% |
| Dividend Discount Model (Stable) | $313.78 | +269.6% |
| Earnings Power Value | $348.55 | +310.5% |
Is TGS NOPEC Geophysical Company ASA (TGS.OL) undervalued or overvalued?
With the current market price at $84.90, 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 TGS NOPEC Geophysical Company ASA'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 | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.73 |
| Cost of equity | 5.7% | 8.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 29.1% | 33.5% |
| Debt/Equity ratio | 0.53 | 0.53 |
| After-tax WACC | 5.0% | 6.9% |
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 | $(1,234) | $(1,741)M | 76.0% |
| 10-Year Growth | $4 | $1,377M | 127.7% |
| 5-Year EBITDA | $10 | $2,619M | 115.9% |
| 10-Year EBITDA | $20 | $4,534M | 108.4% |
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 | $430M |
| Discount Rate (WACC) | 6.9% - 5.0% |
| Enterprise Value | $6,234M - $8,620M |
| Net Debt | $657M |
| Equity Value | $5,578M - $7,963M |
| Outstanding Shares | 196M |
| Fair Value | $28 - $41 |
| Selected Fair Value | $348.55 |
| Metric | Value |
|---|---|
| Market Capitalization | $16663M |
| Enterprise Value | $23298M |
| Trailing P/E | 13.72 |
| Forward P/E | 10.96 |
| Trailing EV/EBITDA | 2.95 |
| Current Dividend Yield | 666.20% |
| Dividend Growth Rate (5Y) | 1.06% |
| Debt-to-Equity Ratio | 0.53 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 40% | $11.13 |
| Dividend Discount Model (Multi-Stage) | 27% | $56.02 |
| Dividend Discount Model (Stable) | 20% | $47.07 |
| Earnings Power Value | 13% | $34.86 |
| Weighted Average | 100% | $198.75 |
Based on our comprehensive valuation analysis, TGS NOPEC Geophysical Company ASA's weighted average intrinsic value is $198.75, which is approximately 134.1% above the current market price of $84.90.
Key investment considerations:
Given these factors, we believe TGS NOPEC Geophysical Company ASA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.