Veren Inc.

TSX:VRN Stock Report

Market Cap: CA$4.7b

Veren Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: VRN (CA$7.58) is trading below our estimate of fair value (CA$18.99)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VRN. This is calculated by dividing VRN's market cap by their current earnings.
What is VRN's PE Ratio?
PE Ratio10.6x
EarningsCA$441.80m
Market CapCA$4.67b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.7x
POU Paramount Resources
12.8x-21.3%CA$4.6b
TPZ Topaz Energy
73x4.2%CA$4.5b
WCP Whitecap Resources
7.2x-17.0%CA$6.3b
MEG MEG Energy
13.9x-1.8%CA$7.0b
VRN Veren
10.6x11.0%CA$4.7b

Price-To-Earnings vs Peers: VRN is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (26.7x).

Price to Earnings Ratio vs Industry

How does VRN'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
VRN 10.6xIndustry Avg. 11.4xNo. of Companies13PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VRN is good value based on its Price-To-Earnings Ratio (10.6x) compared to the Canadian Oil and Gas industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is VRN'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.

VRN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio13.3x

Price-To-Earnings vs Fair Ratio: VRN is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.3x).

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 VRN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$7.58
CA$11.57
+52.7%
10.8%CA$14.00CA$10.00n/a14
Nov ’25CA$6.94
CA$11.89
+71.4%
11.3%CA$14.00CA$10.00n/a14
Oct ’25CA$8.68
CA$13.83
+59.4%
10.7%CA$15.50CA$11.00n/a12
Sep ’25CA$9.75
CA$14.58
+49.5%
10.4%CA$19.00CA$13.00n/a13
Aug ’25CA$10.24
CA$14.65
+43.1%
10.1%CA$19.00CA$13.00n/a13
Jul ’25CA$10.79
CA$14.81
+37.2%
10.2%CA$19.00CA$13.00n/a13
Jun ’25CA$11.86
CA$14.79
+24.7%
9.9%CA$19.00CA$13.00n/a14
May ’25CA$11.70
CA$14.61
+24.8%
10.5%CA$19.00CA$13.00n/a14
Apr ’25CA$11.13
CA$13.14
+18.1%
7.4%CA$15.00CA$12.00n/a14
Mar ’25CA$10.15
CA$12.79
+26.0%
6.6%CA$14.00CA$12.00n/a14
Feb ’25CA$8.60
CA$13.04
+51.6%
8.1%CA$15.50CA$12.00n/a14
Jan ’25CA$9.19
CA$14.21
+54.7%
12.7%CA$19.00CA$12.00n/a14
Dec ’24CA$9.56
CA$14.77
+54.5%
11.8%CA$19.00CA$13.00n/a11
Nov ’24CA$11.20
CA$14.54
+29.8%
11.2%CA$19.00CA$13.00CA$6.9414
Oct ’24CA$11.26
CA$14.09
+25.1%
8.4%CA$16.00CA$13.00CA$8.6814
Sep ’24CA$11.43
CA$13.77
+20.5%
7.6%CA$16.00CA$13.00CA$9.7514
Aug ’24CA$10.78
CA$13.86
+28.5%
11.1%CA$18.00CA$11.50CA$10.2414
Jul ’24CA$8.92
CA$13.69
+53.5%
13.1%CA$18.00CA$11.00CA$10.7913
Jun ’24CA$8.71
CA$13.81
+58.5%
12.0%CA$18.00CA$12.00CA$11.8613
May ’24CA$9.84
CA$14.10
+43.3%
11.8%CA$18.00CA$12.50CA$11.7013
Apr ’24CA$9.54
CA$13.79
+44.5%
9.7%CA$16.00CA$12.50CA$11.1313
Mar ’24CA$9.63
CA$13.94
+44.8%
13.5%CA$18.50CA$11.50CA$10.1513
Feb ’24CA$9.61
CA$13.94
+45.1%
13.5%CA$18.50CA$11.50CA$8.6013
Jan ’24CA$9.66
CA$14.62
+51.3%
12.9%CA$18.50CA$12.00CA$9.1913
Dec ’23CA$10.24
CA$14.69
+43.5%
13.3%CA$18.50CA$12.00CA$9.5613
Nov ’23CA$10.88
CA$14.69
+35.0%
13.3%CA$18.50CA$12.00CA$11.2013

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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