Cenovus Energy Inc.

TSX:CVE.PRE Stock Report

Market Cap: CA$41.3b

Cenovus Energy Valuation

Is CVE.PRE 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.PRE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CVE.PRE (CA$24.75) is trading below our estimate of fair value (CA$63.26)

Significantly Below Fair Value: CVE.PRE 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.PRE?

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

The above table shows the Price to Earnings ratio for CVE.PRE. This is calculated by dividing CVE.PRE's market cap by their current earnings.
What is CVE.PRE's PE Ratio?
PE Ratio11.2x
EarningsCA$3.70b
Market CapCA$41.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CVE.PRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.4x
IMO Imperial Oil
11.3x-5.7%CA$55.9b
SU Suncor Energy
9.1x-12.5%CA$73.0b
PPL Pembina Pipeline
18.8x4.1%CA$34.8b
TRP TC Energy
14.2x-2.3%CA$72.3b
CVE.PRE Cenovus Energy
11.2x5.0%CA$41.3b

Price-To-Earnings vs Peers: CVE.PRE is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does CVE.PRE'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-43.9%US$64.52m
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$4.43m
CVE.PRE 11.2xIndustry Avg. 11.4xNo. of Companies13PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CVE.PRE is good value based on its Price-To-Earnings Ratio (11.2x) compared to the Canadian Oil and Gas industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is CVE.PRE'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.PRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: CVE.PRE is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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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