Paramount Resources Ltd.

OTCPK:PRMR.F Stock Report

Market Cap: US$3.2b

Paramount Resources Valuation

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

Below Fair Value: PRMR.F ($22.28) is trading below our estimate of fair value ($23.69)

Significantly Below Fair Value: PRMR.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 PRMR.F?

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

The above table shows the Price to Earnings ratio for PRMR.F. This is calculated by dividing PRMR.F's market cap by their current earnings.
What is PRMR.F's PE Ratio?
PE Ratio12.7x
EarningsCA$360.50m
Market CapCA$4.54b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRMR.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.4x
CRGY Crescent Energy
41.8x65.9%US$3.3b
BSM Black Stone Minerals
9.4x-7.2%US$3.2b
MUR Murphy Oil
10.2x12.9%US$4.8b
TALO Talos Energy
28.1x-82.6%US$2.1b
PRMR.F Paramount Resources
12.7x-21.3%US$4.5b

Price-To-Earnings vs Peers: PRMR.F is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

How does PRMR.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
PRMR.F 12.7xIndustry Avg. 11.8xNo. of Companies19PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRMR.F is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the US Oil and Gas industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is PRMR.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.

PRMR.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio6.9x

Price-To-Earnings vs Fair Ratio: PRMR.F is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.9x).

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 PRMR.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$22.28
US$28.37
+27.3%
6.9%US$31.40US$25.69n/a6
Nov ’25US$18.95
US$26.75
+41.2%
10.6%US$31.04US$20.93n/a9
Oct ’25US$20.13
US$27.58
+37.0%
10.8%US$31.81US$21.45n/a9
Sep ’25US$20.55
US$28.55
+38.9%
5.9%US$31.88US$26.69n/a9
Aug ’25US$20.53
US$27.91
+36.0%
5.5%US$31.00US$25.95n/a9
Jul ’25US$22.61
US$27.60
+22.1%
5.1%US$30.60US$26.23n/a9
Jun ’25US$24.00
US$27.63
+15.1%
4.9%US$30.70US$26.32n/a10
May ’25US$22.39
US$26.98
+20.5%
6.1%US$30.51US$24.70n/a10
Apr ’25US$20.43
US$24.57
+20.3%
8.9%US$27.64US$21.37n/a9
Mar ’25US$22.10
US$26.00
+17.6%
9.2%US$29.62US$22.21n/a9
Feb ’25US$19.64
US$26.57
+35.3%
9.6%US$29.57US$22.18n/a9
Jan ’25US$19.60
US$29.62
+51.1%
6.6%US$31.87US$24.75n/a9
Dec ’24US$19.69
US$29.23
+48.4%
3.8%US$31.09US$27.07n/a10
Nov ’24US$24.20
US$29.53
+22.0%
4.8%US$32.81US$26.98US$18.9510
Oct ’24US$23.75
US$28.40
+19.6%
8.5%US$31.15US$21.99US$20.1310
Sep ’24US$23.74
US$28.36
+19.4%
8.6%US$31.34US$22.12US$20.5510
Aug ’24US$23.96
US$28.70
+19.8%
8.0%US$30.37US$22.77US$20.5310
Jul ’24US$21.75
US$28.87
+32.7%
5.9%US$30.35US$25.04US$22.6110
Jun ’24US$21.26
US$28.28
+33.1%
6.6%US$30.89US$24.27US$24.0010
May ’24US$23.53
US$29.05
+23.5%
9.3%US$33.96US$24.36US$22.3910
Apr ’24US$21.90
US$28.38
+29.6%
9.0%US$33.35US$23.20US$20.4310
Mar ’24US$22.33
US$28.85
+29.2%
9.6%US$34.07US$23.70US$22.1010
Feb ’24US$22.56
US$28.85
+27.9%
9.6%US$34.07US$23.70US$19.6410
Jan ’24US$21.15
US$29.50
+39.5%
8.7%US$33.93US$25.82US$19.6010
Dec ’23US$22.23
US$30.12
+35.5%
8.4%US$34.55US$27.04US$19.6910
Nov ’23US$22.79
US$29.13
+27.8%
8.8%US$33.55US$26.25US$24.2010

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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