PrairieSky Royalty Ltd.

OTCPK:PREK.F Stock Report

Market Cap: US$5.1b

PrairieSky Royalty Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PREK.F ($21.11) is trading below our estimate of fair value ($24.65)

Significantly Below Fair Value: PREK.F is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PREK.F?

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

The above table shows the Price to Earnings ratio for PREK.F. This is calculated by dividing PREK.F's market cap by their current earnings.
What is PREK.F's PE Ratio?
PE Ratio31.9x
EarningsCA$222.50m
Market CapCA$7.11b

Price to Earnings Ratio vs Peers

How does PREK.F's PE Ratio compare to its peers?

The above table shows the PE ratio for PREK.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.1x
MUR Murphy Oil
10x12.9%US$4.7b
MGY Magnolia Oil & Gas
14.1x3.6%US$5.4b
CRC California Resources
10.1x-13.4%US$5.4b
SM SM Energy
6.2x5.2%US$5.1b
PREK.F PrairieSky Royalty
31.9x2.1%US$7.1b

Price-To-Earnings vs Peers: PREK.F is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (10.1x).

Price to Earnings Ratio vs Industry

How does PREK.F's PE Ratio compare vs other companies in the US Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
PREK.F 31.9xIndustry Avg. 11.5xNo. of Companies20PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PREK.F is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the US Oil and Gas industry average (11.5x).

Price to Earnings Ratio vs Fair Ratio

What is PREK.F'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.

PREK.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.9x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: PREK.F is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

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 PREK.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.11
US$21.96
+4.0%
10.6%US$26.30US$17.77n/a12
Nov ’25US$19.50
US$22.23
+14.0%
10.6%US$26.59US$17.96n/a12
Oct ’25US$20.65
US$22.32
+8.1%
9.3%US$24.46US$18.53n/a11
Sep ’25US$20.65
US$21.66
+4.9%
7.8%US$23.95US$18.14n/a11
Aug ’25US$19.62
US$21.66
+10.4%
7.8%US$23.95US$18.14n/a11
Jul ’25US$19.08
US$21.11
+10.6%
8.7%US$24.04US$17.48n/a11
Jun ’25US$20.51
US$21.21
+3.4%
8.3%US$24.09US$17.52n/a12
May ’25US$18.77
US$21.21
+13.0%
8.3%US$24.09US$17.52n/a12
Apr ’25US$19.92
US$19.80
-0.6%
8.3%US$23.17US$17.05n/a12
Mar ’25US$18.20
US$19.14
+5.2%
6.7%US$21.37US$16.95n/a11
Feb ’25US$16.60
US$19.47
+17.3%
6.5%US$21.64US$17.17n/a12
Jan ’25US$17.68
US$20.11
+13.8%
9.5%US$24.68US$17.20n/a13
Dec ’24US$18.53
US$19.70
+6.3%
9.3%US$23.92US$16.67n/a14
Nov ’24US$17.86
US$19.70
+10.3%
9.3%US$23.92US$16.67US$19.5014
Oct ’24US$18.38
US$19.62
+6.7%
11.7%US$24.46US$16.31US$20.6514
Sep ’24US$19.25
US$19.86
+3.2%
10.5%US$22.78US$16.71US$20.6514
Aug ’24US$19.68
US$19.86
+0.9%
10.5%US$22.78US$16.71US$19.6214
Jul ’24US$17.48
US$19.21
+9.9%
10.2%US$22.65US$16.61US$19.0814
Jun ’24US$17.25
US$18.75
+8.7%
10.3%US$22.40US$16.42US$20.5115
May ’24US$15.74
US$18.75
+19.1%
10.3%US$22.40US$16.42US$18.7715
Apr ’24US$15.86
US$18.71
+18.0%
10.0%US$22.11US$16.22US$19.9215
Mar ’24US$16.11
US$19.15
+18.9%
11.2%US$23.87US$16.41US$18.2015
Feb ’24US$16.82
US$19.04
+13.2%
10.5%US$24.05US$16.54US$16.6015
Jan ’24US$15.94
US$18.51
+16.1%
9.5%US$22.07US$16.19US$17.6814
Dec ’23US$16.37
US$18.90
+15.5%
11.8%US$24.09US$16.18US$18.5314
Nov ’23US$15.56
US$18.41
+18.3%
11.1%US$23.60US$15.85US$17.8614

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Calfrac Well Services

CA$339.8m

Provides specialized oilfield services in Canada, the United States, and Argentina.

CFWF.F

CA$2.85

7D

-0.2%

1Y

-13.5%

Cenovus Energy

CA$39.8b

Develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally.

CVE

CA$15.71

7D

-2.8%

1Y

-11.0%

Civitas Resources

US$4.9b

An exploration and production company, focuses on the acquisition, development, and production of oil and natural gas in the Rocky Mountain region, primarily in the Field of the Denver-Julesburg Basin of Colorado.

CIVI

US$51.47

7D

-0.3%

1Y

-24.4%