Permian Resources Corporation (PR) Intrinsic Value & DCF Valuation
Oil & Gas Exploration & Production · NYSE
Current Price
$23.75
Intrinsic Value
$18.73
-26.8% margin of safety
What Is Permian Resources Corporation's Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Permian Resources Corporation (PR) at $18.73 per share, compared with a market price of $23.75, a margin of safety of -26.8%. The base case assumes 1.1% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $16.39 to $21.5. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Permian Resources Corporation (PR) Undervalued?
At the current price of $23.75, PR trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Prime Permian Basin Acreage
PR holds significant, high-quality acreage in the Permian Basin. This prime location offers lower extraction costs and higher production rates, a key advantage.
↑Operational Efficiency & Scale
The company's focus on operational efficiency and its growing scale allow for cost advantages. This enables them to extract more value from their assets.
↑Disciplined Bolt-on Acquisitions
PR's strategy of acquiring smaller assets at discounts enhances its resource base. This disciplined approach strengthens its competitive position over time.
INVESTMENT RISKS
↓Geological & Drilling Success Uncertainty
The success of exploration and production is inherently tied to geological formations and drilling outcomes. Unforeseen subsurface conditions can lead to lower-than-expected reserves or higher costs.
↓Capital Intensity & Debt Management
The E&P industry requires substantial capital investment. Managing debt levels and ensuring access to capital are critical for continued operations and growth.
↓Competition for Talent and Resources
The Permian Basin is a highly competitive region. Attracting and retaining skilled labor and securing necessary equipment can be challenging and costly.
Base case
PR base case valuation
Intrinsic Value
$18.73
Margin of safety
-26.8%
Expected annual return
-4.6%
Base case assumptions: 1.1% annual growth, 10.0% discount rate, 12.31x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PR valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Permian Resources Corporation respond.
Open DCF Calculator for PRCompany Overview
Permian Resources Corporation operates as an independent producer in the oil and natural gas sector, primarily concentrating its efforts on the extraction of crude oil and associated liquids-rich natural gas reserves within the United States. Its core operational footprint is situated within the Delaware Basin, which is a major sub-basin of the broader Permian Basin. The company's landholdings are predominantly located across Reeves County in West Texas and Lea County, New Mexico. As of December 31, 2021, Permian Resources reported approximately 73,675 net acres under lease or acquisition, along with 991 net mineral acres, all within the Delaware Basin. The company was formerly known as Centennial Resource Development, Inc., officially changing its name to Permian Resources Corporation in September 2022. Incorporated in 2015, its corporate headquarters are located in Midland, Texas.
Financial Metrics — PR Stock Valuation Data
Revenue/Share (TTM)
$6.85
FCF/Share (TTM)
$1.93
ROIC (TTM)
10.2%
ROE (TTM)
11.3%
P/FCF
12.3x
EV/EBITDA
6.2x
FCF Yield
8.12%
Debt/Equity
0.26x
Based on trailing twelve-month data, PR shows a free cash flow per share of $1.93 and a ROIC of 10.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 12.3x and FCF yield of 8.12% are important context metrics when evaluating PR's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of PR?
Permian Resources Corporation currently generates $1.93 in free cash flow per share. At the current price of $23.75, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is PR undervalued?
PR trades at a P/FCF ratio of 12.3x with a free cash flow yield of 8.12%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether PR is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value PR stock using DCF?
To perform a DCF valuation on Permian Resources Corporation: (1) Start with the trailing free cash flow per share ($1.93) 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 — with a debt-to-equity of 0.26x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to PR?
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 company will produce over the next 5-10 years, shaped by Oil & Gas Exploration & Production trends, then discounting those amounts to today's dollars. PR's ROIC of 10.2% shows moderate capital returns.
How does WACC affect PR stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PR, with a debt-to-equity ratio of 0.26x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 6.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See PR PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value PR with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.