Texas Pacific Fair Value
TP
The fair market value of TPL stock is 624.2 USD. Relative to the market price of 1375.135 USD Texas Pacific is overvalued by 54.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Texas Pacific Valuation
Current TPL share ticker price is 1375.135 USD.
The fair value level of 624.2 USD can be considered as an effective entry point for long-term investors to start investing in TPL stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 55% higher its fair value
Current price is 71% higher its minimum value
Current price is 39% higher its maximum value
Market price:
TPL stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Texas Pacific Land Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
42.89
2
Median P/E over 5 years
32.11
3
Minimum P/E over 5 years
20.28
4
Earning per share (last 12 months)
19.44 USD
Maximum value
1
x
4
=
833.75 USD
Fair value
2
x
4
=
624.2 USD
Minimum value
3
x
4
=
394.23 USD
Texas Pacific Land Corp price metrics
44.87
Annual return (geometric mean)
51.05
Risk (standard deviation) of returns
β
1.61
Beta (volatility compared to market)