Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.33%, lower than industry average of 7.50%.

Growth Trajectory

Profitability

In the growth phase company makes 11.50% profit on every dollar of sales, higher than industry average of 4.87%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.42% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
2.28B USD
Equity Value
1.56B USD
FCF Yield
103.07%
Average ROIC
6.31%
Cost of Capital
7.93%
P/E Ratio
11.60x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues1.77B USD1.32B USD
Operating Income or EBIT204.24M USD187.70M USD
Interest Expense85.41M USD35.57M USD
Book Value Of Equity1.97B USD2.08B USD
Book Value Of Debt884.50M USD898.71M USD
Cash and Marketable Securities166.50M USD122.80M USD
Number of Shares Outstanding196.26M--
Minority interests468k USD0 USD
Current Stock Price7.73 USD--
Effective Tax Rate36.00%--
Marginal Tax Rate22.00%--

Performance vs Industry

Revenue Growth
+26.94%
34.43%Company
vs
7.49%Industry
Above Industry
Operating Margin
+6.66%
11.52%Company
vs
4.87%Industry
Above Industry
TGS ASA demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 59% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 1.33B USD Add
Present Value (Cash Flow Over Next 10 Years) 946.09M USD Add
Value of Operating Assets 2.28B USD Sub-total
Debt 884.50M USD Subtract
Minority Interests 468.00K USD Subtract
Cash 166.50M USD Add
Value of Equity 1.56B USD Sub-total
Number of Shares 196.26M shares Divisor
Estimated Value per Share (Fair Value) 7.96 USD Total
Current Market Price 7.72 USD Reference

Financial Projections

Total FCF Present Value
946.09M USD
Avg Revenue Growth
3.90%
Avg Operating Margin
11.49%
Avg ROIC
6.31%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue1.81B USD1.89B USD1.97B USD2.06B USD2.15B USD2.24B USD2.34B USD2.45B USD2.56B USD2.67B USD2.80B USD
Growth Rate 2.45% 4.33% 4.33% 4.33% 4.33% 4.38% 4.43% 4.49% 4.54% 4.59% 4.59%
PROFITABILITY
Operating Income209.23M USD217.94M USD227.20M USD236.85M USD246.91M USD257.73M USD269.17M USD281.26M USD294.05M USD307.58M USD321.72M USD
Operating Margin 11.52% 11.50% 11.49% 11.48% 11.47% 11.47% 11.47% 11.47% 11.47% 11.47% 11.47%
EBIT (1-tax)133.91M USD139.48M USD145.41M USD151.58M USD158.02M USD172.16M USD187.34M USD203.63M USD221.12M USD239.91M USD250.94M USD
CASH FLOW
Reinvestment24.04M USD25.09M USD26.17M USD27.31M USD28.84M USD31.81M USD33.63M USD35.56M USD37.62M USD39.35M USD130.73M USD
Free Cash Flow109.86M USD114.39M USD119.23M USD124.27M USD129.17M USD140.35M USD153.71M USD168.07M USD183.50M USD200.55M USD120.21M USD
Terminal Value--------------------2.84B USD
Present Value102.27M USD99.13M USD96.18M USD93.32M USD90.29M USD91.09M USD92.38M USD93.30M USD93.84M USD94.24M USD—
EFFICIENCY
ROIC 4.98% 5.14% 5.31% 5.49% 5.66% 6.11% 6.57% 7.06% 7.58% 8.11% 8.83%
Cost of Capital 7.42% 7.42% 7.42% 7.42% 7.42% 7.70% 7.98% 8.26% 8.54% 8.83% 8.83%
Sales/Capital 3.26x 3.26x 3.26x 3.26x 3.26x 3.13x 3.13x 3.13x 3.13x 3.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($M)
Reinvestment ($M)