Cenovus Energy Valuation

Is CXD2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 CXD2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CXD2 (€15.7) is trading below our estimate of fair value (€43.11)

Significantly Below Fair Value: CXD2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CXD2?

Key metric: As CXD2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CXD2. This is calculated by dividing CXD2's market cap by their current earnings.
What is CXD2's PE Ratio?
PE Ratio	11x
Earnings	CA$3.70b
Market Cap	CA$40.38b

CXD2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	5x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does CXD2's PE Ratio compare to its peers?

The above table shows the PE ratio for CXD2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	7.6x
SIBN Gazprom Neft	3.7x	n/a	₽1.8t
PTT PTT	8.1x	-2.6%	฿921.2b
IMO Imperial Oil	10.8x	-5.7%	CA$53.6b
ONGC Oil and Natural Gas	8x	10.2%	₹3.3t
CXD2 Cenovus Energy	11x	5.1%	€40.4b

Price-To-Earnings vs Peers: CXD2 is expensive based on its Price-To-Earnings Ratio (11x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

How does CXD2's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CXD2 is expensive based on its Price-To-Earnings Ratio (11x) compared to the European Oil and Gas industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is CXD2'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.

CXD2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	22.5x

Price-To-Earnings vs Fair Ratio: CXD2 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.