Ovintiv Inc.

DB:47Q Stock Report

Market Cap: €10.5b

Ovintiv Valuation

Is 47Q 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 47Q when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 47Q (€39.73) is trading below our estimate of fair value (€58.12)

Significantly Below Fair Value: 47Q is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 47Q?

Key metric: As 47Q is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 47Q. This is calculated by dividing 47Q's market cap by their current earnings.
What is 47Q's PE Ratio?
PE Ratio5.7x
EarningsUS$2.04b
Market CapUS$10.99b

Price to Earnings Ratio vs Peers

How does 47Q's PE Ratio compare to its peers?

The above table shows the PE ratio for 47Q vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.2x
DR0 Deutsche Rohstoff
2.7x-8.9%€157.7m
CE2 CropEnergies
82.4xn/a€1.2b
ARX ARC Resources
12.1x13.2%CA$14.9b
APA APA
3.8x-13.0%US$8.1b
47Q Ovintiv
5.7x-12.0%€11.0b

Price-To-Earnings vs Peers: 47Q is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

How does 47Q's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
47Q 5.7xIndustry Avg. 8.1xNo. of Companies20PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 47Q is good value based on its Price-To-Earnings Ratio (5.7x) compared to the European Oil and Gas industry average (8.2x).

Price to Earnings Ratio vs Fair Ratio

What is 47Q'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.

47Q PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: 47Q is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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 47Q forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€39.73
€53.41
+34.4%
11.0%€64.68€39.95n/a19
Nov ’25€35.76
€49.99
+39.8%
8.4%€58.19€38.79n/a22
Oct ’25€34.15
€50.67
+48.4%
10.6%€61.43€37.94n/a22
Sep ’25€39.35
€54.89
+39.5%
8.0%€61.87€45.73n/a23
Aug ’25€42.64
€57.66
+35.2%
8.0%€63.94€47.26n/a23
Jul ’25€43.40
€58.63
+35.1%
8.2%€66.12€49.36n/a22
Jun ’25€46.12
€58.14
+26.1%
8.4%€65.68€48.78n/a22
May ’25€49.70
€57.89
+16.5%
8.6%€66.51€49.41n/a23
Apr ’25€47.19
€53.61
+13.6%
8.7%€63.04€45.42n/a22
Mar ’25€46.62
€50.08
+7.4%
10.9%€58.29€38.86n/a22
Feb ’25€39.04
€49.46
+26.7%
11.0%€58.10€38.74n/a22
Jan ’25€39.71
€51.71
+30.2%
13.3%€63.62€38.17n/a21
Dec ’24€41.12
€53.64
+30.4%
12.6%€64.30€38.58n/a20
Nov ’24€45.10
€55.71
+23.5%
12.5%€66.09€39.66€35.7620
Oct ’24€46.21
€53.16
+15.0%
13.9%€65.33€36.93€34.1520
Sep ’24€43.09
€50.84
+18.0%
13.4%€63.38€35.82€39.3520
Aug ’24€41.63
€47.74
+14.7%
13.4%€58.20€35.47€42.6420
Jul ’24€34.30
€48.96
+42.7%
15.5%€58.65€32.99€43.4019
Jun ’24€30.83
€51.17
+66.0%
18.1%€72.70€33.56€46.1219
May ’24€31.08
€52.00
+67.3%
15.3%€71.16€36.49€49.7020
Apr ’24€32.01
€56.39
+76.2%
15.2%€73.19€37.06€47.1922
Mar ’24€40.17
€59.47
+48.0%
13.2%€74.09€46.90€46.6222
Feb ’24€44.94
€60.25
+34.1%
12.3%€78.19€46.91€39.0422
Jan ’24€47.12
€64.31
+36.5%
11.7%€85.64€56.47€39.7121
Dec ’23€53.04
€65.98
+24.4%
11.3%€87.49€55.76€41.1219
Nov ’23€51.03
€67.97
+33.2%
10.2%€80.02€55.71€45.1019

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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