Ovintiv Valuation
Is OVV * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 OVV * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: OVV * (MX$795.41) is trading below our estimate of fair value (MX$1206.2)
Significantly Below Fair Value: OVV * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for OVV *?
Key metric: As OVV * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is OVV *'s PE Ratio? | |
|---|---|
| PE Ratio | 5.7x |
| Earnings | US$2.04b |
| Market Cap | US$11.61b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.9x |
| Enterprise Value/EBITDA | 3.6x |
| PEG Ratio | -0.5x |
Price to Earnings Ratio vs Peers
How does OVV *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 9.9x | ||
VISTA A Vista Energy. de | 9.2x | 14.6% | Mex$95.2b |
ARX ARC Resources | 12x | 13.2% | CA$15.2b |
APA APA | 3.6x | -10.7% | US$8.1b |
TOU Tourmaline Oil | 14.9x | 25.5% | CA$23.3b |
OVV * Ovintiv | 5.7x | -12.2% | Mex$11.6b |
Price-To-Earnings vs Peers: OVV * is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (9.9x).
Price to Earnings Ratio vs Industry
How does OVV *'s PE Ratio compare vs other companies in the Global Oil and Gas Industry?
| 27 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 27 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: OVV * is good value based on its Price-To-Earnings Ratio (5.7x) compared to the Global Oil and Gas industry average (10.5x).
Price to Earnings Ratio vs Fair Ratio
What is OVV *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 5.7x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate OVV *'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.
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