PrairieSky Royalty Ltd.

OTCPK:PREK.F Stock Report

Market Cap: US$4.6b

PrairieSky Royalty Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($18.95) is trading below our estimate of fair value ($21.28)

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?

Other financial metrics that can be useful for relative valuation.

PREK.F 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/Revenue13.6x
Enterprise Value/EBITDA14.3x
PEG Ratio0.5x

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 Average10.8x
DEN Denbury
9.5x-18.5%US$4.6b
MGY Magnolia Oil & Gas
11.6x11.6%US$4.9b
VNOM Viper Energy
15.7x-2.5%US$6.6b
NOG Northern Oil and Gas
6.3x-3.3%US$3.8b
PREK.F PrairieSky Royalty
28.5x54.5%US$6.3b

Price-To-Earnings vs Peers: PREK.F is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PREK.F is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the US Oil and Gas industry average (10.7x).


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 Ratio28.5x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: PREK.F is good value based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).


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$18.95
US$21.11
+11.4%
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$16.67n/a14
Oct ’24US$18.38
US$19.62
+6.7%
11.7%US$24.46US$16.31n/a14
Sep ’24US$19.25
US$19.86
+3.2%
10.5%US$22.78US$16.71n/a14
Aug ’24US$19.68
US$19.86
+0.9%
10.5%US$22.78US$16.71n/a14
Jul ’24US$17.48
US$19.21
+9.9%
10.2%US$22.65US$16.61n/a14
Jun ’24US$17.25
US$18.67
+8.2%
10.3%US$22.30US$16.35US$20.5115
May ’24US$15.74
US$18.67
+18.6%
10.3%US$22.30US$16.35US$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$19.09
+18.5%
11.2%US$23.80US$16.36US$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
Oct ’23US$12.91
US$17.34
+34.3%
12.5%US$23.17US$14.48US$18.3814
Sep ’23US$13.45
US$18.45
+37.2%
13.1%US$24.69US$14.66US$19.2515
Aug ’23US$14.85
US$18.69
+25.9%
13.3%US$24.85US$14.75US$19.6814
Jul ’23US$12.69
US$18.42
+45.2%
13.5%US$24.86US$14.76US$17.4814
Jun ’23US$15.26
US$18.11
+18.7%
13.0%US$24.96US$14.82US$17.2514

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


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