* Note: Prices are in Million (M) USD.
Description:
Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquid-rich natural gas reserves in the United States. The company is headquartered in Midland, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $479 M
Debt : $4,306 M
EBITDA : $3,916 M
Net Debt (Debt - Cash): $3,826 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Energy
Industry: Oil & gas e&p
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.70
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $-123 M
Average Revenue: $1,122 M
Revenue Converted To Free Cash Flow (%): -11.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,001 M
Revenue 4 Years Ago (2020-12-31): $580 M
Last 5 Years Average Revenue Growth: 152%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $684 M
Share Count 5 Years Ago (2020-12-31): $277 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.23
Trailing 12-Month Earnings Per Share (EPS): $1.44
Average Earnings Per Share (EPS): $1.34
Dividend Per Share (DPS): $1
Payout Ratio: 53%
Dividend Yield: 5%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: -12,814.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $14
52-Week Low: $10
Threshold Price (15% Above 52-Week Low): $11
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $11,326 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Permian Resources Corporation (PR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 6 Years Avg P/E (13.29)
× EPS ($1.34) = $17.74.
Last 6 Years Avg PE 13.29, Fair Value PE 15, Industry Based PE 15, Growth Based PE 50, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.91. Value-Trades has assined P/E value 18.91. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.335.
The fair value of Permian Resources Corporation (PR) stock should be (18.91 x $1.335) = $25.25.
