ARC Resources Ltd.

DB:8RC Stock Report

Market Cap: €9.6b

ARC Resources Valuation

Is 8RC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 8RC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8RC (€16.11) is trading below our estimate of fair value (€32.53)

Significantly Below Fair Value: 8RC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8RC?

Key metric: As 8RC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8RC. This is calculated by dividing 8RC's market cap by their current earnings.
What is 8RC's PE Ratio?
PE Ratio11.4x
EarningsCA$1.26b
Market CapCA$14.34b

Price to Earnings Ratio vs Peers

How does 8RC's PE Ratio compare to its peers?

The above table shows the PE ratio for 8RC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.4x
DR0 Deutsche Rohstoff
2.7x-8.9%€157.7m
CE2 CropEnergies
82.4xn/a€1.2b
OVV Ovintiv
4.8x-13.0%US$9.8b
APA APA
3.5x-7.6%US$7.6b
8RC ARC Resources
11.4x16.9%€14.3b

Price-To-Earnings vs Peers: 8RC is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does 8RC's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8RC 11.4xIndustry Avg. 8.3xNo. of Companies17PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8RC is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the European Oil and Gas industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is 8RC'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.

8RC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio26.3x

Price-To-Earnings vs Fair Ratio: 8RC is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).

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 8RC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€16.11
€21.36
+32.6%
5.9%€23.46€19.43n/a16
Dec ’25€16.97
€21.29
+25.4%
6.8%€23.75€18.32n/a16
Nov ’25€14.75
€20.38
+38.1%
8.4%€23.30€17.97n/a17
Oct ’25€14.73
€20.23
+37.4%
7.6%€23.44€18.08n/a16
Sep ’25€16.30
€20.39
+25.0%
7.0%€23.13€18.51n/a16
Aug ’25€15.55
€20.52
+32.0%
7.5%€23.38€18.04n/a16
Jul ’25€17.13
€20.70
+20.9%
7.6%€23.88€18.42n/a16
Jun ’25€16.82
€20.24
+20.4%
7.8%€23.57€17.51n/a16
May ’25€17.17
€19.80
+15.3%
7.7%€22.53€17.07n/a16
Apr ’25€16.40
€18.52
+13.0%
7.1%€21.90€17.11n/a16
Mar ’25€15.90
€18.23
+14.7%
7.4%€21.83€17.06n/a16
Feb ’25€13.96
€18.30
+31.1%
7.3%€22.03€16.52n/a16
Jan ’25€13.10
€18.76
+43.2%
8.3%€21.89€16.42n/a16
Dec ’24€14.31
€18.63
+30.2%
8.3%€21.67€15.91€16.9716
Nov ’24€15.33
€17.47
+14.0%
9.0%€20.58€14.41€14.7516
Oct ’24€15.20
€16.95
+11.6%
8.6%€20.20€14.62€14.7316
Sep ’24€13.84
€16.01
+15.7%
8.6%€19.64€14.22€16.3018
Aug ’24€13.36
€15.82
+18.4%
9.4%€19.92€13.74€15.5518
Jul ’24€11.97
€15.69
+31.1%
10.3%€20.14€13.20€17.1316
Jun ’24€11.27
€15.41
+36.7%
10.7%€19.88€13.03€16.8216
May ’24€11.05
€15.08
+36.4%
12.8%€19.73€12.25€17.1716
Apr ’24€9.95
€15.41
+54.8%
12.8%€19.72€12.24€16.4016
Mar ’24€10.40
€16.08
+54.6%
13.8%€20.09€12.47€15.9016
Feb ’24€10.50
€16.74
+59.5%
9.8%€20.05€14.52€13.9616
Jan ’24€12.80
€17.42
+36.1%
9.5%€19.98€15.16€13.1014
Dec ’23€13.80
€18.54
+34.3%
8.6%€21.44€16.27€14.3114

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 07:49
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

ARC Resources Ltd. is covered by 35 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshit GuptaAccountability Research Corporation
Patrick O'RourkeATB Capital Markets
Grant HoferBarclays