Oil & Gas Exploration & Production · NYSE
Current Price
$35.68
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Coterra Energy Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. The company also holds Permian Basin properties with approximately 306,000 net acres; and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids. The company was incorporated in 1989 and is headquartered in Houston, Texas.
ROIC (TTM)
7.1%
ROE (TTM)
11.8%
FCF Yield
6.03%
Based on trailing twelve-month data, CTRA shows a free cash flow per share of N/A and a ROIC of 7.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.03% are important context metrics when evaluating CTRA's stock valuation relative to peers.
The intrinsic value of CTRA depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CTRA is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $35.68. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Coterra Energy Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Exploration & Production industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CTRA's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Coterra Energy Inc., this means projecting how much free cash flow the Oil & Gas Exploration & Production will produce over the next 5-10 years, then discounting those amounts to today's dollars. CTRA's ROIC of 7.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CTRA, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
