Whitecap Resources Inc.

TSX:WCP Stock Report

Market Cap: CA$6.1b

Whitecap Resources Valuation

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

Below Fair Value: WCP (CA$10.44) is trading above our estimate of fair value (CA$4.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WCP. This is calculated by dividing WCP's market cap by their current earnings.
What is WCP's PE Ratio?
PE Ratio7x
EarningsCA$876.80m
Market CapCA$6.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.1x
PSK PrairieSky Royalty
31.8x2.1%CA$7.0b
MEG MEG Energy
13.4x-1.3%CA$6.7b
POU Paramount Resources
12.6x-21.3%CA$4.5b
VRN Veren
10.5x11.1%CA$4.5b
WCP Whitecap Resources
7x-17.0%CA$6.1b

Price-To-Earnings vs Peers: WCP is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does WCP'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
WCP 7.0xIndustry Avg. 11.0xNo. of Companies11PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WCP is good value based on its Price-To-Earnings Ratio (7x) compared to the Canadian Oil and Gas industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is WCP'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.

WCP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio8.5x

Price-To-Earnings vs Fair Ratio: WCP is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (8.5x).

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 WCP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$10.44
CA$13.42
+28.6%
7.6%CA$14.50CA$11.00n/a13
Nov ’25CA$10.20
CA$13.42
+31.6%
7.6%CA$14.50CA$11.00n/a13
Oct ’25CA$10.43
CA$13.63
+30.7%
7.7%CA$15.00CA$11.00n/a13
Sep ’25CA$10.26
CA$13.33
+29.9%
17.3%CA$15.50CA$6.00n/a13
Aug ’25CA$10.31
CA$13.87
+34.5%
6.9%CA$15.50CA$12.00n/a13
Jul ’25CA$10.01
CA$13.54
+35.2%
9.0%CA$15.00CA$11.75n/a13
Jun ’25CA$10.67
CA$13.52
+26.7%
8.5%CA$15.00CA$11.75n/a14
May ’25CA$10.00
CA$13.55
+35.5%
8.7%CA$15.00CA$11.75n/a14
Apr ’25CA$10.39
CA$12.82
+23.4%
9.6%CA$15.00CA$11.00n/a14
Mar ’25CA$9.61
CA$12.75
+32.7%
9.6%CA$15.00CA$11.00n/a14
Feb ’25CA$8.51
CA$12.93
+51.9%
9.7%CA$15.50CA$11.00n/a14
Jan ’25CA$8.87
CA$14.00
+57.8%
13.3%CA$18.50CA$11.50n/a15
Dec ’24CA$9.37
CA$14.27
+52.3%
11.8%CA$18.50CA$11.50n/a15
Nov ’24CA$10.71
CA$14.33
+33.8%
11.8%CA$18.50CA$11.50CA$10.2015
Oct ’24CA$11.47
CA$14.00
+22.1%
10.1%CA$16.50CA$11.50CA$10.4315
Sep ’24CA$11.58
CA$13.77
+18.9%
10.0%CA$16.50CA$11.50CA$10.2616
Aug ’24CA$10.61
CA$13.52
+27.4%
9.6%CA$16.50CA$11.50CA$10.3116
Jul ’24CA$9.27
CA$13.77
+48.5%
10.5%CA$16.50CA$11.50CA$10.0116
Jun ’24CA$9.34
CA$13.92
+49.1%
9.5%CA$16.50CA$12.00CA$10.6716
May ’24CA$10.46
CA$14.19
+35.6%
9.6%CA$16.50CA$12.00CA$10.0016
Apr ’24CA$10.45
CA$14.10
+34.9%
10.7%CA$16.00CA$11.50CA$10.3915
Mar ’24CA$10.71
CA$14.34
+33.9%
11.4%CA$17.00CA$11.50CA$9.6116
Feb ’24CA$10.77
CA$14.38
+33.5%
10.4%CA$17.00CA$12.00CA$8.5116
Jan ’24CA$10.74
CA$14.63
+36.3%
10.0%CA$17.00CA$12.00CA$8.8715
Dec ’23CA$10.67
CA$14.73
+38.1%
10.5%CA$17.50CA$11.00CA$9.3715
Nov ’23CA$10.61
CA$14.73
+38.9%
10.5%CA$17.50CA$11.00CA$10.7115

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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