Peyto Exploration & Development Corp.

TSX:PEY Stock Report

Market Cap: CA$3.2b

Peyto Exploration & Development Valuation

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

Below Fair Value: PEY (CA$16.03) is trading below our estimate of fair value (CA$63.12)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEY?

Other financial metrics that can be useful for relative valuation.

PEY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5x
Enterprise Value/EBITDA5.3x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does PEY's PE Ratio compare to its peers?

The above table shows the PE ratio for PEY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.2x
ATH Athabasca Oil
32.7x47.3%CA$2.7b
POU Paramount Resources
11.7x27.5%CA$4.1b
TPZ Topaz Energy
71.9xn/aCA$3.9b
IPCO International Petroleum
8.7x-3.1%CA$2.1b
PEY Peyto Exploration & Development
10.6x21.3%CA$3.2b

Price-To-Earnings vs Peers: PEY is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (31.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PEY is good value based on its Price-To-Earnings Ratio (10.6x) compared to the Canadian Oil and Gas industry average (11.9x).


Price to Earnings Ratio vs Fair Ratio

What is PEY'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.

PEY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: PEY is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).


Analyst Price Targets

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

The above table shows the analyst PEY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$16.03
CA$17.70
+10.4%
9.1%CA$22.00CA$16.00n/a10
Sep ’25CA$14.57
CA$17.85
+22.5%
9.0%CA$22.00CA$16.00n/a10
Aug ’25CA$14.39
CA$17.80
+23.7%
9.3%CA$22.00CA$15.50n/a10
Jul ’25CA$14.58
CA$17.85
+22.4%
10.2%CA$22.00CA$14.50n/a10
Jun ’25CA$15.29
CA$17.86
+16.8%
9.7%CA$22.00CA$14.50n/a11
May ’25CA$15.12
CA$17.00
+12.4%
10.0%CA$20.00CA$13.50n/a11
Apr ’25CA$15.11
CA$16.68
+10.4%
9.6%CA$20.00CA$14.00n/a11
Mar ’25CA$14.38
CA$15.36
+6.8%
11.9%CA$20.00CA$12.50n/a11
Feb ’25CA$12.89
CA$15.59
+21.0%
13.0%CA$20.00CA$12.50n/a11
Jan ’25CA$12.04
CA$16.39
+36.1%
15.8%CA$23.00CA$13.50n/a11
Dec ’24CA$12.58
CA$16.89
+34.2%
13.1%CA$23.00CA$14.50n/a11
Nov ’24CA$14.69
CA$16.84
+14.6%
13.2%CA$23.00CA$14.50n/a11
Oct ’24CA$13.69
CA$16.47
+20.3%
15.4%CA$23.00CA$13.50CA$15.699
Sep ’24CA$12.82
CA$14.95
+16.7%
14.6%CA$21.00CA$13.00CA$14.5711
Aug ’24CA$11.52
CA$14.73
+27.8%
14.9%CA$21.00CA$13.00CA$14.3911
Jul ’24CA$10.96
CA$15.45
+41.0%
17.0%CA$23.00CA$13.00CA$14.5811
Jun ’24CA$10.84
CA$15.68
+44.7%
16.4%CA$23.00CA$13.50CA$15.2911
May ’24CA$12.30
CA$16.52
+34.3%
15.0%CA$23.00CA$13.50CA$15.1211
Apr ’24CA$12.11
CA$16.84
+39.1%
15.5%CA$24.00CA$13.50CA$15.1111
Mar ’24CA$12.41
CA$17.02
+37.2%
15.2%CA$24.00CA$13.50CA$14.3811
Feb ’24CA$11.79
CA$17.89
+51.7%
15.3%CA$26.00CA$15.00CA$12.8911
Jan ’24CA$13.87
CA$18.28
+31.8%
15.9%CA$26.00CA$15.00CA$12.0410
Dec ’23CA$14.55
CA$18.61
+27.9%
15.6%CA$26.00CA$16.00CA$12.589
Nov ’23CA$12.80
CA$18.33
+43.2%
17.2%CA$26.00CA$14.00CA$14.699
Oct ’23CA$11.02
CA$18.44
+67.4%
15.4%CA$25.00CA$14.00CA$13.699

Analyst Forecast: Target price is less than 20% higher than the current share price.


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