PrairieSky Royalty Ltd.

TSX:PSK Stock Report

Market Cap: CA$7.0b

PrairieSky Royalty Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PSK (CA$29.62) is trading below our estimate of fair value (CA$35.23)

Significantly Below Fair Value: PSK is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PSK. This is calculated by dividing PSK's market cap by their current earnings.
What is PSK's PE Ratio?
PE Ratio31.8x
EarningsCA$222.50m
Market CapCA$7.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PSK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
MEG MEG Energy
13.4x-1.3%CA$6.7b
WCP Whitecap Resources
7x-17.0%CA$6.1b
SCR Strathcona Resources
8.8x-9.6%CA$6.9b
POU Paramount Resources
12.6x-21.3%CA$4.5b
PSK PrairieSky Royalty
31.8x2.1%CA$7.0b

Price-To-Earnings vs Peers: PSK is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does PSK'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
PSK 31.8xIndustry Avg. 11.0xNo. of Companies11PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PSK is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the Canadian Oil and Gas industry average (10.7x).

Price to Earnings Ratio vs Fair Ratio

What is PSK'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.

PSK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.8x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: PSK is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).

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 PSK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$29.62
CA$30.94
+4.4%
10.6%CA$37.00CA$25.00n/a12
Nov ’25CA$27.22
CA$30.94
+13.7%
10.6%CA$37.00CA$25.00n/a12
Oct ’25CA$27.90
CA$30.11
+7.9%
9.3%CA$33.00CA$25.00n/a11
Sep ’25CA$27.92
CA$29.84
+6.9%
7.8%CA$33.00CA$25.00n/a11
Aug ’25CA$27.21
CA$29.84
+9.7%
7.8%CA$33.00CA$25.00n/a11
Jul ’25CA$26.00
CA$28.98
+11.5%
8.7%CA$33.00CA$24.00n/a11
Jun ’25CA$27.71
CA$29.06
+4.9%
8.3%CA$33.00CA$24.00n/a12
May ’25CA$25.74
CA$29.06
+12.9%
8.3%CA$33.00CA$24.00n/a12
Apr ’25CA$27.19
CA$26.71
-1.8%
8.3%CA$31.25CA$23.00n/a12
Mar ’25CA$24.60
CA$25.98
+5.6%
6.7%CA$29.00CA$23.00n/a11
Feb ’25CA$22.13
CA$26.08
+17.9%
6.5%CA$29.00CA$23.00n/a12
Jan ’25CA$23.20
CA$26.88
+15.9%
9.5%CA$33.00CA$23.00n/a13
Dec ’24CA$25.13
CA$27.18
+8.2%
9.3%CA$33.00CA$23.00n/a14
Nov ’24CA$24.76
CA$27.18
+9.8%
9.3%CA$33.00CA$23.00CA$27.2214
Oct ’24CA$24.96
CA$26.46
+6.0%
11.7%CA$33.00CA$22.00CA$27.9014
Sep ’24CA$26.16
CA$26.16
+0.003%
10.5%CA$30.00CA$22.00CA$27.9214
Aug ’24CA$26.24
CA$26.16
-0.3%
10.5%CA$30.00CA$22.00CA$27.2114
Jul ’24CA$23.16
CA$25.45
+9.9%
10.2%CA$30.00CA$22.00CA$26.0014
Jun ’24CA$23.29
CA$25.12
+7.8%
10.3%CA$30.00CA$22.00CA$27.7115
May ’24CA$21.38
CA$25.12
+17.5%
10.3%CA$30.00CA$22.00CA$25.7415
Apr ’24CA$21.40
CA$25.38
+18.6%
10.0%CA$30.00CA$22.00CA$27.1915
Mar ’24CA$21.90
CA$25.67
+17.2%
11.2%CA$32.00CA$22.00CA$24.6015
Feb ’24CA$22.30
CA$25.33
+13.6%
10.5%CA$32.00CA$22.00CA$22.1315
Jan ’24CA$21.70
CA$25.16
+15.9%
9.5%CA$30.00CA$22.00CA$23.2014
Dec ’23CA$21.95
CA$25.11
+14.4%
11.8%CA$32.00CA$21.50CA$25.1314
Nov ’23CA$21.17
CA$24.96
+17.9%
11.1%CA$32.00CA$21.50CA$24.7614

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

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