Paramount Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: POU (CA$27.43) is trading above our estimate of fair value (CA$25.62)

Significantly Below Fair Value: POU is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

POU 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/Revenue2.2x
Enterprise Value/EBITDA4.3x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for POU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
TPZ Topaz Energy
68x22.8%CA$3.2b
ERF Enerplus
8.6xn/aCA$5.3b
PEY Peyto Exploration & Development
9.9x13.7%CA$2.9b
WCP Whitecap Resources
6.9x-10.0%CA$6.1b
POU Paramount Resources
8.4x13.4%CA$4.0b

Price-To-Earnings vs Peers: POU is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (23.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: POU is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Canadian Oil and Gas industry average (9.8x).


Price to Earnings Ratio vs Fair Ratio

What is POU'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.

POU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio11.4x

Price-To-Earnings vs Fair Ratio: POU is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).


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 POU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$27.43
CA$33.33
+21.5%
8.9%CA$37.50CA$29.00n/a9
Mar ’25CA$29.94
CA$35.11
+17.3%
9.2%CA$40.00CA$30.00n/a9
Feb ’25CA$26.31
CA$35.94
+36.6%
9.6%CA$40.00CA$30.00n/a9
Jan ’25CA$25.93
CA$39.50
+52.3%
6.6%CA$42.50CA$33.00n/a9
Dec ’24CA$26.60
CA$39.95
+50.2%
3.8%CA$42.50CA$37.00n/a10
Nov ’24CA$33.56
CA$40.50
+20.7%
4.8%CA$45.00CA$37.00n/a10
Oct ’24CA$32.25
CA$38.75
+20.2%
8.5%CA$42.50CA$30.00n/a10
Sep ’24CA$32.21
CA$38.45
+19.4%
8.6%CA$42.50CA$30.00n/a10
Aug ’24CA$31.87
CA$37.80
+18.6%
8.0%CA$40.00CA$30.00n/a10
Jul ’24CA$28.80
CA$38.05
+32.1%
5.9%CA$40.00CA$33.00n/a10
Jun ’24CA$28.64
CA$38.45
+34.3%
6.6%CA$42.00CA$33.00n/a10
May ’24CA$31.80
CA$39.35
+23.7%
9.3%CA$46.00CA$33.00n/a10
Apr ’24CA$29.60
CA$39.15
+32.3%
9.0%CA$46.00CA$32.00n/a10
Mar ’24CA$30.51
CA$38.95
+27.7%
9.6%CA$46.00CA$32.00CA$29.9410
Feb ’24CA$29.98
CA$38.95
+29.9%
9.6%CA$46.00CA$32.00CA$26.3110
Jan ’24CA$28.64
CA$40.00
+39.7%
8.7%CA$46.00CA$35.00CA$25.9310
Dec ’23CA$29.88
CA$40.10
+34.2%
8.4%CA$46.00CA$36.00CA$26.6010
Nov ’23CA$31.14
CA$39.95
+28.3%
8.8%CA$46.00CA$36.00CA$33.5610
Oct ’23CA$24.40
CA$42.10
+72.5%
7.6%CA$48.00CA$37.00CA$32.2510
Sep ’23CA$28.77
CA$42.30
+47.0%
9.0%CA$48.00CA$34.00CA$32.2110
Aug ’23CA$31.81
CA$43.65
+37.2%
10.7%CA$52.00CA$34.00CA$31.8710
Jul ’23CA$30.74
CA$44.75
+45.6%
11.5%CA$52.00CA$35.00CA$28.8010
Jun ’23CA$37.68
CA$42.75
+13.5%
10.6%CA$50.00CA$35.00CA$28.6410
May ’23CA$31.06
CA$39.75
+28.0%
11.9%CA$50.00CA$33.00CA$31.8010
Apr ’23CA$31.35
CA$35.95
+14.7%
8.1%CA$40.00CA$31.00CA$29.6010
Mar ’23CA$29.07
CA$31.70
+9.0%
9.6%CA$36.00CA$25.00CA$30.5110

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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