A Look At TotalEnergies EP Gabon (ENXTPA:EC) Valuation After Weaker 2025 Earnings Results

Market reaction to weaker 2025 results

TotalEnergies EP Gabon Société Anonyme (ENXTPA:EC) reported full year 2025 earnings showing sales of US$417.81 million and net income of US$46.27 million, both lower than the prior year, with earnings per share at US$10.28.

See our latest analysis for TotalEnergies EP Gabon Société Anonyme.

Despite the weaker 2025 earnings, the stock has shown strong momentum, with a 26.54% 90 day share price return and a 38.11% total shareholder return over the past year. This suggests investors are reassessing the risk and reward balance at the current €236.0 share price.

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With earnings down, yet the stock trading around €236.0 and flagged as trading at an intrinsic discount of about 51%, you need to ask yourself whether there is real value here or whether the market is already pricing in future growth.

Preferred P/E of 20.5x: Is it justified?

On a P/E of 20.5x at a €236.0 share price, TotalEnergies EP Gabon Société Anonyme screens as cheaper than its peer group average of 25x, even though the latest earnings release was weaker year on year.

The P/E multiple compares the share price to earnings per share and is a quick way to see how much investors are paying for each unit of current profit. For an oil and gas exploration and production business like EC, this often reflects what the market is willing to pay for its earnings profile, given sector risks and commodity exposure.

Here, that 20.5x sits below the peer average of 25x, which suggests the stock is not priced at a premium to similar companies on this measure. However, it is above the wider European oil and gas industry average P/E of 16.8x, so the market is still assigning a higher multiple than the broader group. This possibly reflects EC’s 48.2% earnings growth over the past year and its track record of becoming profitable over the last five years.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-earnings of 20.5x (ABOUT RIGHT)

However, your thesis can still be challenged if weaker earnings persist or if sector specific issues in Gabon affect production and cash generation expectations.

Find out about the key risks to this TotalEnergies EP Gabon Société Anonyme narrative.

Another view: cash flows paint a different picture

While the 20.5x P/E suggests EC sits between its peer group and the wider industry, the SWS DCF model points in a stronger direction, with an estimated fair value of €479.64 versus a €236.0 share price. This implies a large valuation gap that investors need to interpret with care.

If the DCF output is closer to reality than the earnings multiple, the main question is whether the market is missing something or correctly applying a heavier discount for country, sector and balance sheet risks.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out TotalEnergies EP Gabon Société Anonyme for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 240 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Next Steps

This combination of weaker earnings, strong recent returns and a wide gap to DCF fair value sends a mixed signal. It may be helpful to act promptly, review the numbers for yourself and decide how you feel about the balance of 2 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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