With a recent daily loss of -7.36%, a 3-month gain of 13.65%, and Earnings Per Share (EPS) standing at 50.4, Vital Energy (VTLE, Financial) has been a focus of interest for investors. The key question on everyone's mind is whether the stock is fairly valued. This article aims to provide an in-depth analysis of Vital Energy's valuation, encouraging readers to delve into the following sections for a comprehensive understanding of the company's worth.
Company Introduction
Vital Energy is an independent energy company specializing in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. With a current stock price of $51.34 and a Fair Value (GF Value) of $50.06, Vital Energy (VTLE, Financial) appears to be fairly valued. This valuation is based on a thorough financial assessment and a deep understanding of the company's operations and history. The income breakdown of Vital Energy is illustrated in the chart below:
Understanding GF Value
The GF Value is a proprietary measure that represents the current intrinsic value of a stock. It is calculated based on historical multiples, a GuruFocus adjustment factor based on the company's past performance and growth, and future business performance estimates. The GF Value Line on the summary page provides an overview of the fair value that the stock should ideally trade at. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. Conversely, if it is significantly below the GF Value Line, its future return will likely be higher.
Based on GuruFocus' valuation method, Vital Energy (VTLE, Financial) appears to be fairly valued. The stock's fair value is estimated considering historical multiples, an internal adjustment based on the company's past business growth, and analyst estimates of future business performance. With a market cap of $1.10 billion at its current price of $51.34 per share, Vital Energy's stock shows every sign of being fairly valued. Since Vital Energy is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth.
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