SU Valuation

Suncor Energy Inc

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38.840

+0.05(0.129%)1D

Overview
Forecast
Valuation
Earnings

SU Relative Valuation

SU'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, SU is overvalued; if below, it's undervalued.

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Historical Valuation

Suncor Energy Inc (SU) is now in the Fair zone, suggesting that its current forward PS ratio of 1.38 is considered Fairly compared with the five-year average of -9.20. The fair price of Suncor Energy Inc (SU) is between 32.72 to 40.19 according to relative valuation methord.

Relative Value

Fair Zone

32.72-40.19

Current Price：38.79

Fair

14.45

Trailing

Forward

5.66

EV/EBITDA

Suncor Energy Inc. (SU) has a current EV/EBITDA of 5.66. The 5-year average EV/EBITDA is 4.65. The thresholds are as follows: Strongly Undervalued below 2.75, Undervalued between 2.75 and 3.70, Fairly Valued between 5.60 and 3.70, Overvalued between 5.60 and 6.55, and Strongly Overvalued above 6.55. The current Forward EV/EBITDA of 5.66 falls within the Overvalued range.

11.86

EV/EBIT

Suncor Energy Inc. (SU) has a current EV/EBIT of 11.86. The 5-year average EV/EBIT is 11.02. The thresholds are as follows: Strongly Undervalued below -20.94, Undervalued between -20.94 and -4.96, Fairly Valued between 27.00 and -4.96, Overvalued between 27.00 and 42.97, and Strongly Overvalued above 42.97. The current Forward EV/EBIT of 11.86 falls within the Historic Trend Line -Fairly Valued range.

1.37

Suncor Energy Inc. (SU) has a current PS of 1.37. The 5-year average PS is 1.17. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 1.00, Fairly Valued between 1.33 and 1.00, Overvalued between 1.33 and 1.50, and Strongly Overvalued above 1.50. The current Forward PS of 1.37 falls within the Overvalued range.

5.46

P/OCF

Suncor Energy Inc. (SU) has a current P/OCF of 5.46. The 5-year average P/OCF is 4.30. The thresholds are as follows: Strongly Undervalued below 2.74, Undervalued between 2.74 and 3.52, Fairly Valued between 5.08 and 3.52, Overvalued between 5.08 and 5.86, and Strongly Overvalued above 5.86. The current Forward P/OCF of 5.46 falls within the Overvalued range.

10.21

P/FCF

Suncor Energy Inc. (SU) has a current P/FCF of 10.21. The 5-year average P/FCF is 8.41. The thresholds are as follows: Strongly Undervalued below 2.81, Undervalued between 2.81 and 5.61, Fairly Valued between 11.21 and 5.61, Overvalued between 11.21 and 14.01, and Strongly Overvalued above 14.01. The current Forward P/FCF of 10.21 falls within the Historic Trend Line -Fairly Valued range.

Suncor Energy Inc (SU) has a current Price-to-Book (P/B) ratio of 1.46. Compared to its 3-year average P/B ratio of 1.45 , the current P/B ratio is approximately 0.52% higher. Relative to its 5-year average P/B ratio of 1.35, the current P/B ratio is about 8.08% higher. Suncor Energy Inc (SU) has a Forward Free Cash Flow (FCF) yield of approximately 12.90%. Compared to its 3-year average FCF yield of 13.73%, the current FCF yield is approximately -6.06% lower. Relative to its 5-year average FCF yield of 10.68% , the current FCF yield is about 20.81% lower.

1.47

P/B

Median3y

1.45

Median5y

1.35

13.02

FCF Yield

Median3y

13.73

Median5y

10.68

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Competitors Valuation Multiple

The average P/S ratio for SU's competitors is 1.57, providing a benchmark for relative valuation. Suncor Energy Inc Corp (SU) exhibits a P/S ratio of 1.37, which is -12.93% above the industry average. Given its robust revenue growth of -6.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Canadian Natural Resources Ltd

Occidental Petroleum Corp

1.61

-5.91%

43.46B

Performance Decomposition

Market capitalization of SU decreased by 3.21% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.41 to 11.86.

The secondary factor is the Revenue Growth, contributed -6.97%to the performance.

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

-6.97%

12.89B → 11.99B

Revenue Growth

-22.27%

12.17 → 9.46

Margin Expansion

26.03%

9.41 → 11.86

P/E Change

-3.21%