Coterra Energy Inc. (CTRA) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$32.56
PE Ratio (TTM)
14.8x
Intrinsic Value
$40.44
+19.5% margin of safety
COMPETITIVE MOAT
↑Permian Basin Asset Base
Coterra possesses significant, high-quality acreage in the Permian Basin. This provides a long-term, low-cost production advantage.
↑Operational Efficiency
The company demonstrates strong execution in drilling and completions. This translates to lower lifting costs and higher well productivity.
↑Disciplined Capital Allocation
Coterra prioritizes shareholder returns through dividends and buybacks. This financial discipline supports long-term value creation.
INVESTMENT RISKS
↓Commodity Price Volatility
Oil and gas prices are inherently volatile. Fluctuations directly impact Coterra's revenue and profitability.
↓Regulatory Environment
Stricter environmental regulations could increase operating costs. Permitting and compliance challenges may arise.
↓Competition for Resources
Intense competition exists for skilled labor and drilling services. This can lead to higher operational expenses.
Base case
CTRA base case PE valuation
A base case PE valuation for CTRA estimates a fair value of about $40.44 per share, against a current price of $32.56. The model assumes 7.9% annual earnings growth, a 15x target PE multiple, and a 10% discount rate.
Intrinsic Value
$40.44
Margin of safety
+19.5%
Expected annual return
+4.4%
Base case assumptions: 7.9% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-05-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CTRA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Coterra Energy Inc. respond.
Open PE Calculator for CTRACompany Overview
Operating as an independent entity in the United States, Coterra Energy Inc. is engaged in the upstream sector of the energy industry, specializing in the discovery, extraction, and development of crude oil, natural gas, and natural gas liquids (NGLs). The company's primary operational footprint is concentrated in Pennsylvania's Susquehanna County, within the dry gas window of the Marcellus Shale, where it holds roughly 177,000 net acres. Beyond this, Coterra maintains significant landholdings in other prolific basins, including approximately 306,000 net acres in the Permian Basin and about 182,000 net acres within Oklahoma's Anadarko Basin. Furthermore, in Texas, Coterra manages infrastructure for natural gas and saltwater disposal gathering. Its natural gas output is supplied to a diverse clientele, encompassing industrial consumers, local utilities, energy marketers, prominent energy corporations, pipeline operators, and electricity generating plants. As of year-end 2021, Coterra reported substantial proved reserves totaling roughly 2,892,582 thousand barrels of oil equivalent (MBOE). This figure comprised approximately 189,429 thousand barrels of crude oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids. The corporation was established in 1989 and its corporate headquarters are situated in Houston, Texas.
Financial Metrics — CTRA PE Stock Valuation Data
PE Ratio (TTM)
14.8x
PEG Ratio
0.55
Earnings Yield
6.75%
ROE (TTM)
11.3%
Revenue/Share (TTM)
$10.13
Dividend Yield
2.70%
Debt/Equity
0.23x
Frequently Asked Questions
What is the PE ratio of CTRA?
The trailing twelve-month PE ratio of CTRA reflects how much investors pay per dollar of Coterra Energy Inc.'s earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is CTRA overvalued based on PE ratio?
CTRA's PE of 14.8x combined with a PEG ratio of 0.55 provides a growth-adjusted perspective. A PEG below 1.0 suggests CTRA may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Exploration & Production, a DCF analysis may be more appropriate.
How do I value CTRA stock using PE ratio?
To value Coterra Energy Inc. using PE: (1) Compare the current PE (14.8x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (0.55) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CTRA?
CTRA's PEG ratio is 0.55, calculated by dividing the PE ratio (14.8x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CTRA stock valuation?
PE ratio gives a quick relative read — how CTRA is priced versus Oil & Gas Exploration & Production peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CTRA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value CTRA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-05-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.