OVV Valuation

Ovintiv Inc

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38.860

+1.3(3.461%)1D

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 PE ratio of 8.13 is considered Fairly compared with the five-year average of 6.31. The fair price of Ovintiv Inc (OVV) is between 28.67 to 42.86 according to relative valuation methord.

Relative Value

Fair Zone

28.67-42.86

Current Price：38.86

Fair

8.13

Trailing

Forward

3.88

EV/EBITDA

Ovintiv Inc. (OVV) has a current EV/EBITDA of 3.88. The 5-year average EV/EBITDA is 3.89. The thresholds are as follows: Strongly Undervalued below 3.05, Undervalued between 3.05 and 3.47, Fairly Valued between 4.30 and 3.47, Overvalued between 4.30 and 4.72, and Strongly Overvalued above 4.72. The current Forward EV/EBITDA of 3.88 falls within the Historic Trend Line -Fairly Valued range.

7.84

EV/EBIT

Ovintiv Inc. (OVV) has a current EV/EBIT of 7.84. The 5-year average EV/EBIT is 7.15. The thresholds are as follows: Strongly Undervalued below 1.86, Undervalued between 1.86 and 4.50, Fairly Valued between 9.79 and 4.50, Overvalued between 9.79 and 12.43, and Strongly Overvalued above 12.43. The current Forward EV/EBIT of 7.84 falls within the Historic Trend Line -Fairly Valued range.

38.86

Ovintiv Inc. (OVV) has a current PS of 38.86. The 5-year average PS is 1.37. The thresholds are as follows: Strongly Undervalued below -4.82, Undervalued between -4.82 and -1.72, Fairly Valued between 4.47 and -1.72, Overvalued between 4.47 and 7.56, and Strongly Overvalued above 7.56. The current Forward PS of 38.86 falls within the Strongly Overvalued range.

2.58

P/OCF

Ovintiv Inc. (OVV) has a current P/OCF of 2.58. The 5-year average P/OCF is 2.61. The thresholds are as follows: Strongly Undervalued below 1.63, Undervalued between 1.63 and 2.12, Fairly Valued between 3.11 and 2.12, Overvalued between 3.11 and 3.60, and Strongly Overvalued above 3.60. The current Forward P/OCF of 2.58 falls within the Historic Trend Line -Fairly Valued range.

7.69

P/FCF

Ovintiv Inc. (OVV) has a current P/FCF of 7.69. The 5-year average P/FCF is 6.48. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 4.30, Fairly Valued between 8.66 and 4.30, Overvalued between 8.66 and 10.83, and Strongly Overvalued above 10.83. The current Forward P/FCF of 7.69 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 1.20 , the current P/B ratio is approximately -19.68% higher. Relative to its 5-year average P/B ratio of 1.51, the current P/B ratio is about -36.50% higher. Ovintiv Inc (OVV) has a Forward Free Cash Flow (FCF) yield of approximately -8.14%. Compared to its 3-year average FCF yield of 12.05%, the current FCF yield is approximately -167.54% lower. Relative to its 5-year average FCF yield of 12.06% , the current FCF yield is about -167.50% lower.

0.96

P/B

Median3y

1.20

Median5y

1.51

-8.14

FCF Yield

Median3y

12.05

Median5y

12.06

Competitors Valuation Multiple

The average P/S ratio for OVV's competitors is 46.10, providing a benchmark for relative valuation. Ovintiv Inc Corp (OVV) exhibits a P/S ratio of 38.86, which is -15.71% above the industry average. Given its robust revenue growth of -7.10%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Permian Resources Corp

Performance Decomposition

Market capitalization of OVV decreased by 13.82% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.65 to 43.15.

The secondary factor is the Revenue Growth, contributed -7.10%to the performance.

Overall, the performance of OVV in the past 1 year is driven by P/E Change. Which is more unsustainable.

-7.10%

2.20B → 2.04B

Revenue Growth

-68.60%

23.09 → 7.25

Margin Expansion

61.88%

26.65 → 43.15

P/E Change

-13.82%