Cenovus Energy Valuation
| CVE Stock | USD 20.85 0.19 0.92% |
At this time, the firm appears to be undervalued. Cenovus Energy shows a prevailing Real Value of $22.61 per share. The current price of the firm is $20.85. Our model approximates the value of Cenovus Energy from analyzing the firm fundamentals such as Current Valuation of 46.87 B, return on equity of 0.15, and Profit Margin of 0.08 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Cenovus Energy's valuation include:
Price Book 1.8997 | Enterprise Value 46.9 B | Enterprise Value Ebitda 4.3583 | Price Sales 0.7536 | Forward PE 10.661 |
Undervalued
Today
Please note that Cenovus Energy's price fluctuation is very steady at this time. Calculation of the real value of Cenovus Energy is based on 3 months time horizon. Increasing Cenovus Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Cenovus Energy is useful when determining the fair value of the Cenovus stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cenovus Energy. Since Cenovus Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cenovus Stock. However, Cenovus Energy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 20.85 | Real 22.61 | Target 22.07 | Hype 20.69 |
The real value of Cenovus Stock, also known as its intrinsic value, is the underlying worth of Cenovus Energy Company, which is reflected in its stock price. It is based on Cenovus Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Cenovus Energy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Cenovus Energy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Cenovus Energy helps investors to forecast how Cenovus stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cenovus Energy more accurately as focusing exclusively on Cenovus Energy's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cenovus Energy's intrinsic value based on its ongoing forecasts of Cenovus Energy's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cenovus Energy's closest peers. When choosing an evaluation method for Cenovus Energy, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Cenovus Energy Investments |
|
Cenovus Valuation Trend
Knowing Cenovus Energy's actual value is paramount for traders to make sound investment determinations. Cenovus Energy's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Cenovus Energy's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Cenovus Energy's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Cenovus Market Cap
Cenovus Energy is rated third in market capitalization category among related companies. Market capitalization of Energy industry is currently estimated at about 366.51 Billion. Cenovus Energy retains roughly 38.61 Billion in market capitalization claiming about 11% of equities under Energy industry.Cenovus Energy Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Cenovus Energy's current stock value. Our valuation model uses many indicators to compare Cenovus Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cenovus Energy competition to find correlations between indicators driving Cenovus Energy's intrinsic value. More Info.Cenovus Energy is rated second in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Cenovus Energy is roughly 7.37 . The current year's Price To Book Ratio is expected to grow to 1.82. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cenovus Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cenovus Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cenovus Energy's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Cenovus Energy's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Cenovus Energy and how it compares across the competition.
About Cenovus Energy Valuation
The stock valuation mechanism determines the current worth of Cenovus Energy on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cenovus Energy. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cenovus Energy based exclusively on its fundamental and basic technical indicators. By analyzing Cenovus Energy's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cenovus Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cenovus Energy. We calculate exposure to Cenovus Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cenovus Energy's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.2 B | 5.4 B | |
| Pretax Profit Margin | 0.1 | 0.05 | |
| Operating Profit Margin | 0.10 | 0.07 | |
| Net Profit Margin | 0.08 | 0.05 | |
| Gross Profit Margin | 0.12 | 0.23 |
Cenovus Energy Quarterly Retained Earnings |
|
8 Steps to conduct Cenovus Energy's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cenovus Energy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Cenovus Energy's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cenovus Energy's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cenovus Energy's revenue streams: Identify Cenovus Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cenovus Energy's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cenovus Energy's growth potential: Evaluate Cenovus Energy's management, business model, and growth potential.
- Determine Cenovus Energy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Cenovus Energy's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Cenovus Energy represents a small ownership stake in the entity. As a stockholder of Cenovus, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Cenovus Energy Dividends Analysis For Valuation
The current year's Dividend Payout Ratio is expected to grow to 0.40, whereas Dividends Paid is projected to grow to (974.7 M). . At present, Cenovus Energy's Earnings Yield is projected to slightly decrease based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 15.90, whereas Price Earnings To Growth Ratio is projected to grow to (0.28).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -1 B | -974.7 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.25 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | (2.26) | (2.37) |
There are various types of dividends Cenovus Energy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Cenovus shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Cenovus Energy directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cenovus pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cenovus Energy by the value of the dividends paid out.
Cenovus Energy Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Cenovus Energy does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.9 B | |
| Quarterly Earnings Growth Y O Y | -0.025 | |
| Forward Price Earnings | 10.661 |
Cenovus Energy Current Valuation Indicators
Valuation refers to the process of determining the present value of Cenovus Energy and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cenovus we look at many different elements of the entity such as Cenovus's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cenovus Energy's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Cenovus Energy's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cenovus Energy, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cenovus Energy's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cenovus Energy's worth.When determining whether Cenovus Energy is a strong investment it is important to analyze Cenovus Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cenovus Energy's future performance. For an informed investment choice regarding Cenovus Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cenovus Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. For information on how to trade Cenovus Stock refer to our How to Trade Cenovus Stock guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Cenovus Stock analysis
When running Cenovus Energy's price analysis, check to measure Cenovus Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cenovus Energy is operating at the current time. Most of Cenovus Energy's value examination focuses on studying past and present price action to predict the probability of Cenovus Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cenovus Energy's price. Additionally, you may evaluate how the addition of Cenovus Energy to your portfolios can decrease your overall portfolio volatility.
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |
Is Cenovus Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cenovus Energy. If investors know Cenovus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cenovus Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Dividend Share 0.525 | Earnings Share 1.54 | Revenue Per Share 27.541 | Quarterly Revenue Growth (0.07) |
The market value of Cenovus Energy is measured differently than its book value, which is the value of Cenovus that is recorded on the company's balance sheet. Investors also form their own opinion of Cenovus Energy's value that differs from its market value or its book value, called intrinsic value, which is Cenovus Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cenovus Energy's market value can be influenced by many factors that don't directly affect Cenovus Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cenovus Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cenovus Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cenovus Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.