Cenovus Energy Valuation

Is CVE.PRA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CVE.PRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CVE.PRA (CA$20.72) is trading below our estimate of fair value (CA$56.53)

Significantly Below Fair Value: CVE.PRA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CVE.PRA?

Key metric: As CVE.PRA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CVE.PRA. This is calculated by dividing CVE.PRA's market cap by their current earnings.
What is CVE.PRA's PE Ratio?
PE Ratio10.5x
EarningsCA$3.70b
Market CapCA$38.81b

Price to Earnings Ratio vs Peers

How does CVE.PRA's PE Ratio compare to its peers?

The above table shows the PE ratio for CVE.PRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.9x
IMO Imperial Oil
10.6x-5.7%CA$52.3b
SU Suncor Energy
8.5x-13.8%CA$68.3b
PPL Pembina Pipeline
17.5x4.1%CA$32.4b
TOU Tourmaline Oil
14.9x25.5%CA$23.3b
CVE.PRA Cenovus Energy
10.5x4.8%CA$38.8b

Price-To-Earnings vs Peers: CVE.PRA is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (12.9x).


Price to Earnings Ratio vs Industry

How does CVE.PRA's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.2x-41.1%US$60.60m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.4xn/aUS$4.38m
CVE.PRA 10.5xIndustry Avg. 10.6xNo. of Companies13PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CVE.PRA is good value based on its Price-To-Earnings Ratio (10.5x) compared to the Canadian Oil and Gas industry average (10.6x).


Price to Earnings Ratio vs Fair Ratio

What is CVE.PRA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CVE.PRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: CVE.PRA is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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