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OVV Valuation

Ovintiv Inc
$
39.550
-0.09(-0.227%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

OVV Relative Valuation

OVV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, OVV is overvalued; if below, it's undervalued.

Historical Valuation

Ovintiv Inc (OVV) is now in the Fair zone, suggesting that its current forward PS ratio of 1.18 is considered Fairly compared with the five-year average of -51.94. The fair price of Ovintiv Inc (OVV) is between 38.26 to 52.42 according to relative valuation methord.
Relative Value
Fair Zone
38.26-52.42
Current Price:39.55
Fair
6.97
PE
1Y
3Y
5Y
Trailing
Forward
3.88
EV/EBITDA
Ovintiv Inc. (OVV) has a current EV/EBITDA of 3.88. The 5-year average EV/EBITDA is 3.91. The thresholds are as follows: Strongly Undervalued below 3.00, Undervalued between 3.00 and 3.46, Fairly Valued between 4.37 and 3.46, Overvalued between 4.37 and 4.82, and Strongly Overvalued above 4.82. The current Forward EV/EBITDA of 3.88 falls within the Historic Trend Line -Fairly Valued range.
7.57
EV/EBIT
Ovintiv Inc. (OVV) has a current EV/EBIT of 7.57. The 5-year average EV/EBIT is 7.92. The thresholds are as follows: Strongly Undervalued below -2.71, Undervalued between -2.71 and 2.60, Fairly Valued between 13.24 and 2.60, Overvalued between 13.24 and 18.55, and Strongly Overvalued above 18.55. The current Forward EV/EBIT of 7.57 falls within the Historic Trend Line -Fairly Valued range.
1.18
PS
Ovintiv Inc. (OVV) has a current PS of 1.18. The 5-year average PS is 1.06. The thresholds are as follows: Strongly Undervalued below 0.54, Undervalued between 0.54 and 0.80, Fairly Valued between 1.33 and 0.80, Overvalued between 1.33 and 1.59, and Strongly Overvalued above 1.59. The current Forward PS of 1.18 falls within the Historic Trend Line -Fairly Valued range.
2.56
P/OCF
Ovintiv Inc. (OVV) has a current P/OCF of 2.56. The 5-year average P/OCF is 2.55. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 1.98, Fairly Valued between 3.11 and 1.98, Overvalued between 3.11 and 3.68, and Strongly Overvalued above 3.68. The current Forward P/OCF of 2.56 falls within the Historic Trend Line -Fairly Valued range.
7.91
P/FCF
Ovintiv Inc. (OVV) has a current P/FCF of 7.91. The 5-year average P/FCF is 6.71. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 3.45, Fairly Valued between 9.96 and 3.45, Overvalued between 9.96 and 13.22, and Strongly Overvalued above 13.22. The current Forward P/FCF of 7.91 falls within the Historic Trend Line -Fairly Valued range.
Ovintiv Inc (OVV) has a current Price-to-Book (P/B) ratio of 0.96. Compared to its 3-year average P/B ratio of 1.29 , the current P/B ratio is approximately -25.29% higher. Relative to its 5-year average P/B ratio of 1.49, the current P/B ratio is about -35.35% higher. Ovintiv Inc (OVV) has a Forward Free Cash Flow (FCF) yield of approximately -6.23%. Compared to its 3-year average FCF yield of 13.15%, the current FCF yield is approximately -147.33% lower. Relative to its 5-year average FCF yield of 11.82% , the current FCF yield is about -152.68% lower.
0.96
P/B
Median3y
1.29
Median5y
1.49
-6.23
FCF Yield
Median3y
13.15
Median5y
11.82

Competitors Valuation Multiple

The average P/S ratio for OVV's competitors is 2.18, providing a benchmark for relative valuation. Ovintiv Inc Corp (OVV) exhibits a P/S ratio of 1.18, which is -45.91% above the industry average. Given its robust revenue growth of 0.90%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of OVV decreased by 6.04% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.59 to 17.18.
The secondary factor is the Revenue Growth, contributed 0.90%to the performance.
Overall, the performance of OVV in the past 1 year is driven by P/E Change. Which is more unsustainable.
0.90%
2.21B → 2.23B
Revenue Growth
+
-10.53%
15.38 → 13.76
Margin Expansion
+
3.59%
16.59 → 17.18
P/E Change
=
-6.04%
42.19 → 39.64
Mkt Cap Growth

FAQ

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Is Ovintiv Inc (OVV) currently overvalued or undervalued?

Ovintiv Inc (OVV) is now in the Fair zone, suggesting that its current forward PS ratio of 1.18 is considered Fairly compared with the five-year average of -51.94. The fair price of Ovintiv Inc (OVV) is between 38.26 to 52.42 according to relative valuation methord.
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What is Ovintiv Inc (OVV) fair value?

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How does OVV's valuation metrics compare to the industry average?

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What is the current P/B ratio for Ovintiv Inc (OVV) as of Aug 13 2025?

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What is the current FCF Yield for Ovintiv Inc (OVV) as of Aug 13 2025?

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What is the current Forward P/E ratio for Ovintiv Inc (OVV) as of Aug 13 2025?

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What is the current Forward P/S ratio for Ovintiv Inc (OVV) as of Aug 13 2025?