Petrus Resources Ltd.

TSX:PRQ Stock Report

Market Cap: CA$179.1m

Petrus Resources Valuation

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

Below Fair Value: PRQ (CA$1.43) is trading below our estimate of fair value (CA$1.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRQ. This is calculated by dividing PRQ's market cap by their current earnings.
What is PRQ's PE Ratio?
PE Ratio4.2x
EarningsCA$42.47m
Market CapCA$179.10m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.4x
ALV Alvopetro Energy
8.2x81.7%CA$173.2m
ORC.B Orca Energy Group
10.4xn/aCA$158.1m
IPO InPlay Oil
8.3x-10.8%CA$158.6m
LCX Lycos Energy
10.6xn/aCA$145.3m
PRQ Petrus Resources
4.2xn/aCA$179.1m

Price-To-Earnings vs Peers: PRQ is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (9.4x).

Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.3x-43.9%US$65.03m
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$4.93m
PRQ 4.2xIndustry Avg. 11.0xNo. of Companies11PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRQ is good value based on its Price-To-Earnings Ratio (4.2x) compared to the Canadian Oil and Gas industry average (10.7x).

Price to Earnings Ratio vs Fair Ratio

What is PRQ'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.

PRQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PRQ's Price-To-Earnings Fair Ratio for valuation analysis.

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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