Cenovus Energy Valuation

Q: What is the Fair Price of CVE N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CVE N (MX$365) is trading below our estimate of [[fair value]] (MX$841.28)

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

Below Fair Value: CVE N (MX$365) is trading below our estimate of fair value (MX$841.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CVE N. This is calculated by dividing CVE N's market cap by their current earnings.
What is CVE N's PE Ratio?
PE Ratio	10.2x
Earnings	CA$4.75b
Market Cap	CA$48.24b

CVE N 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	1x
Enterprise Value/EBITDA	4.9x
PEG Ratio	-11.4x

Price to Earnings Ratio vs Peers

How does CVE N's PE Ratio compare to its peers?

The above table shows the PE ratio for CVE N 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	9.4x
VISTA A Vista Energy. de	10.4x	15.0%	Mex$110.0b
ONGC Oil and Natural Gas	7.5x	10.3%	₹3.1t
IMO Imperial Oil	11.3x	-5.7%	CA$55.9b
PTT PTT	8.5x	-2.6%	฿964.0b
CVE N Cenovus Energy	10.2x	-0.9%	Mex$48.2b

Price-To-Earnings vs Peers: CVE N is expensive based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (9.7x).

Price to Earnings Ratio vs Industry

How does CVE N's PE Ratio compare vs other companies in the Global Oil and Gas Industry?

30 Companies	Price / Earnings	Estimated Growth	Market Cap

30 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CVE N is good value based on its Price-To-Earnings Ratio (10.2x) compared to the Global Oil and Gas industry average (10.2x).

Price to Earnings Ratio vs Fair Ratio

What is CVE N'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.

CVE N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CVE N's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Petróleo Brasileiro - Petrobras

R$501.0b

Explores, produces, and sells oil and gas in Brazil and internationally.

PBRA N

R$242.36

n/a

Murphy Oil

US$4.9b

Operates as an oil and gas exploration and production company in the United States, Canada, and internationally.

MUR *

US$693.81

n/a

TotalEnergies

€130.2b

A multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally.

TTE N

€1,284.00

12.2%