Ring Energy Inc (REI) fair value: what the stock is really worth
As of Oct 20, 2026: fair value (intrinsic value) of Ring Energy Inc stock $3.52, price $1.38, upside +155.0%, quality 26 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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 Oct 19, 2026.
How to read this chart
60‑month range $0.7300 – $4.96 · fair‑value band $1.59 – $7.29 · the $1.38 price screens below the $3.52 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 Oct 19, 2026.
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Ring Energy, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties.
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The company has interests in 74,717 net developed acres and 4,366 net undeveloped acres in Andrews, Gaines, Crane, Ector, Winkler, and Ward counties, Texas; and 8,833 net developed acres and 8,318 net undeveloped acres in Yoakum County, Texas and Lea County, New Mexico.
It primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was founded in 2004 and is headquartered in The Woodlands, Texas.
Stock analysis
Ring Energy Inc (REI) currently trades at $1.38, while our model-based Fair Value estimate is $3.52, implying the stock looks roughly 60.8% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $4.26 per share, and 9 of the 12 models we run sit above the $1.38 price.
Bear case: the Earnings-Based group reads lowest at $0.6900, and 3 of the 12 models stay below the price. Data coverage for this calculation is low.
Scenario range: $1.59 (bear) to $7.29 (bull), the price of $1.38 sits below 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 26/100 (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.
Ring Energy Inc reported revenue of $307M in FY2025 versus $196M in FY2021, a compound +11.8%/yr. Reported net income was −$34.7M in FY2025.
Key figures
Market cap $331M Small · P/E ex one-offs 7.3 · P/S ratio 1.11 · EPS (TTM) $−0.9800 · Net margin −71.4% · Return on equity −26.7% · Return on assets (EBIT) 10.8% · Operating margin 74.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 30 out of 100 (medium confidence).
What moves the price
The share trades about 30% below its 52-week high and 65% 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 155%, REI screens cheaper than that median.
Fair Value models
Bear$1.59Fair Value $3.52Bull$7.29
Price $1.38 · Upside +155.0%
Capped: our models arrive at a very high value here. We deliberately show a more cautious Fair Value.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.
Best data coverage
EPV$0.4200$0.6900$0.920072
FCF DCF$2.97$5.04$11.2070
Growth DCF$2.68$5.74$10.5370
All 13 models by family
DCF Models
FCF DCF$2.97$5.04$11.2070
5Y Revenue Exit$0.6100$1.61$3.6662
5Y EBITDA Exit$1.92$4.26$8.8365
10Y Revenue Exit$1.39$3.54$4.4862
10Y EBITDA Exit$2.30$6.09$12.4259
Earnings-Based
EPV$0.4200$0.6900$0.920072
Multiples
EV/EBIT$0.5200$1.24$1.9562
EV/EBITDA$1.36$2.35$3.3465
EV/Revenuen/an/a$0.220050
Asset-Based
NCAV (Graham)$1.60$2.15$3.2154
Growth DCF
Growth DCF$2.68$5.74$10.5370
Rev-Margin DCF$0.8000$2.08$4.8061
Economic Profit
ROIC Compounder$0.4200$0.6900$0.920067
The fair value above starts from this blend and is adjusted for dilution from new shares.
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
−16.1%
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.
−4.0%
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.
+22.1%
Start year 2020 (pandemic). Over 10 years: +25.8% a year
Revenue growth 15 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.
+101.7%
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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.
−237.7% (2020) → 24.2% (2025)
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
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
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).
+6.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +4.1% a year for the price and +3.9% for the forecasts.
Price, fair value, quality and upside side by side.
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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 · 262 stocks
Beats the industry median on 7/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score26 · Bottom 25%
Fair Value upside+155.0% · Top 25%
Profitability
Return on assets−2.3% · Below median
Net margin (12 months)−71.4% · Bottom 25%
Operating margin (12 months)74.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)26.5% · Above median
Balance sheet
Debt / equity0.50× · Above median
Valuation Multiplesvs Oil & Gas E&P median · lower = cheaper
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). "Ring Energy Inc Fair Value". https://www.fairvalue-calculator.com/stock/REI
Frequently asked questions
Is Ring Energy Inc (REI) overvalued or undervalued?
As of Oct 19, 2026, our model estimates a fair value of $3.52 versus a price of $1.38, about +155% upside (undervalued).
What is the fair value of REI?
Our model-based fair value for Ring Energy Inc is $3.52 (as of Oct 19, 2026), built from audited fundamentals. The current price: $1.38.
What is the quality score of REI?
Ring Energy Inc has a Quality Score of 26/100. 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 Ring Energy Inc (REI)?
Our model-based price target is the fair value of $3.52 (as of Oct 19, 2026) from 13 valuation models. Cautious scenario $1.59, optimistic scenario $7.29. It is a calculation from audited fundamentals, not an analyst target.
What is the Ring Energy Inc stock forecast for 2026?
Our models put fair value at $3.52, about +155% upside versus a price of $1.38 (undervalued). Cautious scenario $1.59, optimistic scenario $7.29. The calculation is refreshed regularly with new filings.
What is the revenue of Ring Energy Inc (REI)?
Ring Energy Inc reported trailing-twelve-month revenue of about $308M (latest available figure, as of Oct 19, 2026).
What growth is priced into Ring Energy Inc (REI)?
For today's price to be fair in a discounted-cash-flow model, Ring Energy Inc would have to grow free cash flow by +6.6 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +22.1 % per year. As of Oct 19, 2026.
What discount rate (WACC) does the fair value of REI use?
Our models discount Ring Energy Inc at 11.2 %: a base by market capitalisation (small), damped by beta 0.99, 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 Ring Energy Inc that is +6.6 % per year a year over ten years, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has Ring Energy Inc (REI) delivered so far?
Over the past 5 years revenue at Ring Energy Inc grew +22.1 % a year. The price currently implies +6.6 % 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 Ring Energy Inc (REI) growing?
The median revenue growth in the sector is +12.5 % a year. That is the yardstick for the growth priced into Ring Energy Inc (+6.6 % 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 Ring Energy Inc (REI)?
The free-cash-flow yield on the price is 15.98 %: that much free cash flow Ring Energy Inc produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ring Energy Inc (REI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ring Energy Inc it is $3.52 per share (as of Oct 19, 2026), against a price of $1.38. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Ring Energy Inc stock overvalued or undervalued in 2026?
As of Oct 19, 2026, REI trades below its calculated fair value: price $1.38, fair value $3.52, a gap of about +155% (undervalued). 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 REI?
No. The price is what the market pays today ($1.38); the fair value is what the company's own numbers justify ($3.52). For Ring Energy Inc the two are $2.14 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ring Energy Inc worth?
The market values Ring Energy Inc at about $331M (market capitalisation, as of Oct 19, 2026). Per share that is $1.38; our models calculate a fair value of $3.52 per share.
What do the bullish and bearish scenarios say about REI?
Our models span a range for Ring Energy Inc: cautious scenario $1.59, base $3.52, optimistic $7.29 per share (as of Oct 19, 2026, price $1.38). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of REI?
The PEG ratio of Ring Energy Inc is 1.82 (P/E divided by earnings growth, as of Oct 19, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Ring Energy Inc (REI)?
Balance-sheet figures for Ring Energy Inc (as of Oct 19, 2026): return on equity −26.7%, debt of 0.50 per unit of equity. They feed the Quality Score of 26/100, which measures business quality independently of the share price.
How far is REI from its 52-week high?
Ring Energy Inc trades at $1.38, about 30% below its 52-week high of $1.98 and 65% above the low of $0.8378 (as of Oct 20, 2026). Distance from the high says nothing about value: that is what the fair value of $3.52 is for.
Which stocks are comparable to Ring Energy Inc?
From the same area (Energy) we also value ConocoPhillips explores for,, CNOOC Limited, 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 Ring Energy Inc stock attractive at the current price?
The data as of Oct 19, 2026: price $1.38, calculated fair value $3.52 (+155%), Quality Score 26/100, 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 REI calculated?
We run Ring Energy Inc 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 $3.52, 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 13.8 % above its aggregate fair value. Ring Energy Inc currently trades 61 % below its own fair value, and the market average says nothing about that. 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 Ring Energy Inc (REI)?
The closing price on Oct 20, 2026 was $1.38. Our model-based fair value is $3.52, about +155% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ring Energy Inc right now?
The large discount to fair value meets weak quality (26/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case ($1.59). The market is more pessimistic than our downside scenario. The model range is unusually wide ($1.59 to $7.29). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Key figures of Ring Energy Inc
How large is the market capitalisation of Ring Energy Inc (REI)?
The market capitalisation of Ring Energy Inc is $331M. 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/E ratio of Ring Energy Inc (REI) excluding one-off items?
Excluding one-off items, the price-to-earnings ratio of Ring Energy Inc is 7.3 (fiscal year 2025, the reported result was a loss).
What is the P/S ratio of Ring Energy Inc (REI)?
The price-to-sales ratio of Ring Energy Inc is 1.11 (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 Ring Energy Inc (REI)?
Earnings per share at Ring Energy Inc are $−0.9800. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Ring Energy Inc (REI)?
The net margin of Ring Energy Inc is −71.4% (last twelve months). 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 Ring Energy Inc (REI)?
The return on equity (ROE) of Ring Energy Inc is −26.7% (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 Ring Energy Inc (REI)?
On an EBIT basis the return on assets of Ring Energy Inc is 10.8% (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 Ring Energy Inc (REI)?
The operating margin of Ring Energy Inc is 74.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ring Energy Inc (REI)?
Revenue at Ring Energy Inc is growing +26.5% versus a year earlier (3y avg −4.0%). 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 Ring Energy Inc (REI)?
Earnings per share at Ring Energy Inc are growing +170% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Ring Energy Inc (REI) carry?
The net debt of Ring Energy Inc is $422M (fiscal year 2025, ≈ 8.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Oct 19, 2026