Oil & Gas Exploration & Production · NYSE
Current Price
$21.65
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Permian Resources Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. Its assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. The company's properties consist of acreage blocks primarily in Reeves County, West Texas and Lea County, New Mexico. As of December 31, 2021, it leased or acquired approximately 73,675 net acres; and owned 991 net mineral acres in the Delaware Basin. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.
ROIC (TTM)
7.0%
ROE (TTM)
9.6%
FCF Yield
3.60%
Based on trailing twelve-month data, PR shows a free cash flow per share of N/A and a ROIC of 7.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.60% are important context metrics when evaluating PR's stock valuation relative to peers.
The intrinsic value of PR 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 PR is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $21.65. 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 Permian Resources Corporation: (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 PR'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 Permian Resources Corporation, 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. PR's ROIC of 7.0% 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 PR, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
