Epsilon Energy Ltd (EPSN) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Epsilon Energy Ltd $3.46, price $5.87, upside -41.1%, quality 37 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Watch Epsilon Energy Ltd for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card.Watch for freePro now: $1 first month
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $3.82 – $8.01 · fair‑value band $1.04 – $6.48 · the $5.87 price screens above the $3.46 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 23, 2026.
Follow Epsilon Energy in your weekly email
Every Wednesday you see whether Epsilon Energy is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, exploration, development, gathering, and production of natural oil and gas reserves. The company operates through Upstream and Gathering System segments.
Show more
Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, exploration, development, gathering, and production of natural oil and gas reserves. The company operates through Upstream and Gathering System segments. It has natural gas production in the Appalachian Basin in Pennsylvania; oil, natural gas liquids, and natural gas production in the Powder River Basin in Wyoming, the Permian Basin in Texas and New Mexico, and the Western Canadian Sedimentary Basin in Alberta. Epsilon Energy Ltd. was incorporated in 2005 and is based in Houston, Texas.
Stock analysis
Epsilon Energy Ltd (EPSN) currently trades at $5.87, while our model-based Fair Value estimate is $3.46, implying the stock looks roughly 69.7% overvalued today.
Show more
Valuation
Bull case: the Multiples group reads highest at a median of $3.79 per share, and 0 of the 13 models we run sit above the $5.87 price.
Bear case: the Growth DCF group reads lowest at $1.41, and 13 of the 13 models stay below the price. Evidence for this calculation is medium.
Scenario range: $1.04 (bear) to $6.48 (bull), the price of $5.87 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 37/100 (below-average quality), in the Energy sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Epsilon Energy Ltd reported revenue of $51.6M in FY2025 versus $42.4M in FY2021, a compound +5.0%/yr. Reported net income was −$5.8M in FY2025.
Key figures
Market cap $160M · P/S ratio 2.63 · EPS (TTM) $−0.4100 · Dividend yield 4.3% · Net margin −11.2% · Return on equity −8.1% · Return on assets (EBIT) 14.5% · Operating margin 7.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 41% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at 10% fair-value upside, at −41%, EPSN screens richer than that median.
Fair Value models
Bear $1.04Fair Value $3.46Bull $6.48
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+63.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−9.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.1%
Start year 2020 (pandemic). Over 10 years: +8.0% a year
Revenue growth 19 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+32.4%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
30.7% (2019) → 10.9% (2024)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+27.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +24.3% a year for the price.
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas E&P · 307 stocks
Beats the industry median on 4/12 measures
Overall it trails its industry peers.
Valuation
Quality Score37 · Below median
Fair Value upside−41% · Below median
Profitability
Return on assets5% · Above median
Net margin (TTM)−15% · Bottom 25%
Operating margin (TTM)8% · Below median
Growth and dividend
Revenue growth58% · Top 25%
Dividend yield (TTM)4.3% · Above median
Balance sheet
Debt / equity0.40× · Above median
Valuation Multiplesvs Oil & Gas E&P median · lower = cheaper
P/B1.28× · Cheaper than median
P/S (TTM)2.63× · Pricier than median
P/FCF30.7× · Priciest 25%
EV/EBITDA7.0× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 28
FUTURE (revenue growth)100· sector 12
PAST (return on equity)0· sector 9
HEALTH (low debt)80· sector 86
DIVIDEND (yield)85· sector 74
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Epsilon Energy Ltd Fair Value". https://www.fairvalue-calculator.com/stock/EPSN
Frequently asked questions
Is Epsilon Energy Ltd (EPSN) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $3.46 versus a price of $5.87, about −41% upside (overvalued).
What is the fair value of EPSN?
Our model-based fair value for Epsilon Energy Ltd is $3.46 (as of Sep 23, 2026), built from audited fundamentals. The current price: $5.87.
What is the quality score of EPSN?
Epsilon Energy Ltd has a Quality Score of 37/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Epsilon Energy Ltd (EPSN)?
Our model-based price target is the fair value of $3.46 (as of Sep 23, 2026) from 13 valuation models. Cautious scenario $1.04, optimistic scenario $6.48. It is a calculation from audited fundamentals, not an analyst target.
What is the Epsilon Energy Ltd stock forecast for 2026?
Our models put fair value at $3.46, about −41% upside versus a price of $5.87 (overvalued). Cautious scenario $1.04, optimistic scenario $6.48. The calculation is refreshed regularly with new filings.
What is the revenue of Epsilon Energy Ltd (EPSN)?
Epsilon Energy Ltd reported trailing-twelve-month revenue of about $61.0M (latest available figure, as of Sep 23, 2026).
Does Epsilon Energy Ltd pay a dividend?
Epsilon Energy Ltd currently shows a dividend yield of about 4.26% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Epsilon Energy Ltd (EPSN)?
For today's price to be fair in a discounted-cash-flow model, Epsilon Energy Ltd would have to grow free cash flow by +27.2 % per year for five years (discount rate 12.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.1 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of EPSN use?
Our models discount Epsilon Energy Ltd at 12.7 %: a base by market capitalisation (micro), country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Epsilon Energy Ltd that is +27.2 % per year a year over ten years, using the same discount rate (12.7 %) and the same formula as our fair value.
How much growth has Epsilon Energy Ltd (EPSN) delivered so far?
Over the past 5 years revenue at Epsilon Energy Ltd grew +16.1 % a year. The price currently implies +27.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Epsilon Energy Ltd (EPSN) growing?
The median revenue growth in the sector is +1.8 % a year. That is the yardstick for the growth priced into Epsilon Energy Ltd (+27.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Epsilon Energy Ltd (EPSN)?
The free-cash-flow yield on the price is 3.87 %: that much free cash flow Epsilon Energy Ltd produces per unit of market value. When it exceeds the discount rate of our models (12.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Epsilon Energy Ltd (EPSN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Epsilon Energy Ltd it is $3.46 per share (as of Sep 23, 2026), against a price of $5.87. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Epsilon Energy Ltd stock overvalued or undervalued in 2026?
As of Sep 23, 2026, EPSN trades above its calculated fair value: price $5.87, fair value $3.46, a gap of about −41% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EPSN?
No. The price is what the market pays today ($5.87); the fair value is what the company's own numbers justify ($3.46). For Epsilon Energy Ltd the two are $2.41 per share apart. That gap is exactly why we show both numbers side by side.
How much is Epsilon Energy Ltd worth?
The market values Epsilon Energy Ltd at about $160M (market capitalisation, as of Sep 23, 2026). Per share that is $5.87; our models calculate a fair value of $3.46 per share.
What do the bullish and bearish scenarios say about EPSN?
Our models span a range for Epsilon Energy Ltd: cautious scenario $1.04, base $3.46, optimistic $6.48 per share (as of Sep 23, 2026, price $5.87). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Epsilon Energy Ltd (EPSN)?
Balance-sheet figures for Epsilon Energy Ltd (as of Sep 23, 2026): return on equity −8.1%, debt of 0.40 per unit of equity. They feed the Quality Score of 37/100, which measures business quality independently of the share price.
How far is EPSN from its 52-week high?
Epsilon Energy Ltd trades at $5.87, about 9% below its 52-week high of $6.42 and 41% above the low of $4.16 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $3.46 is for.
Which stocks are comparable to Epsilon Energy Ltd?
From the same area (Energy) we also value CNOOC Limited, ConocoPhillips explores for,, Canadian Natural Resources Limited, EOG Resources, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Epsilon Energy Ltd stock attractive at the current price?
The data as of Sep 23, 2026: price $5.87, calculated fair value $3.46 (−41%), Quality Score 37/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EPSN calculated?
We run Epsilon Energy Ltd through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $3.46, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.2 % above its aggregate fair value. Epsilon Energy Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Epsilon Energy Ltd (EPSN)?
The closing price on Sep 23, 2026 was $5.87. Our model-based fair value is $3.46, about −41% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Epsilon Energy Ltd right now?
Weak quality (37/100) and above fair value at the same time, the margin of safety is missing on both counts. The model range is unusually wide ($1.04 to $6.48). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Key figures of Epsilon Energy Ltd
How large is the market capitalisation of Epsilon Energy Ltd (EPSN)?
The market capitalisation of Epsilon Energy Ltd is $160M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Epsilon Energy Ltd (EPSN)?
The price-to-sales ratio of Epsilon Energy Ltd is 2.63 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Epsilon Energy Ltd (EPSN)?
Earnings per share at Epsilon Energy Ltd are $−0.4100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Epsilon Energy Ltd (EPSN)?
The dividend yield of Epsilon Energy Ltd is 4.3%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Epsilon Energy Ltd (EPSN)?
The net margin of Epsilon Energy Ltd is −11.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Epsilon Energy Ltd (EPSN)?
The return on equity (ROE) of Epsilon Energy Ltd is −8.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Epsilon Energy Ltd (EPSN)?
On an EBIT basis the return on assets of Epsilon Energy Ltd is 14.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Epsilon Energy Ltd (EPSN)?
The operating margin of Epsilon Energy Ltd is 7.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Epsilon Energy Ltd (EPSN)?
Revenue at Epsilon Energy Ltd is growing +58.4% versus a year earlier (3y avg −9.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Epsilon Energy Ltd (EPSN)?
Earnings per share at Epsilon Energy Ltd are growing −88.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Epsilon Energy Ltd (EPSN) carry?
The net debt of Epsilon Energy Ltd is $42.2M (fiscal year 2025, ≈ 8.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Epsilon Energy Ltd in the live analysis
One click puts Epsilon Energy Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Some data
Sep 23, 2026