Permian Resources Corporation (PR) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$19.51
PE Ratio (TTM)
24.4x
Intrinsic Value
$30.31
+35.6% margin of safety
COMPETITIVE MOAT
↑Permian Basin Asset Quality
PR holds a significant, high-quality acreage position in the Permian Basin. This prime location offers access to prolific, low-cost oil and gas reserves.
↑Operational Efficiency Gains
The company demonstrates improved cost control and capital discipline. This focus on efficiency enhances profitability and allows for greater value realization from its assets.
↑Momentum & Value Appeal
PR is recognized as a strong momentum and value stock. This dual appeal suggests market recognition of its improving fundamentals and potential for future growth.
INVESTMENT RISKS
↓Commodity Price Volatility
As an E&P company, PR's profitability is highly sensitive to fluctuating oil and gas prices. Significant price drops can negatively impact revenue and cash flow.
↓Regulatory & Environmental Scrutiny
The oil and gas industry faces increasing regulatory and environmental pressures. New policies or stricter enforcement could lead to higher operating costs or production limitations.
↓Competition for Resources
The Permian Basin is a highly competitive region. PR must continually compete for skilled labor, equipment, and additional acreage to maintain its growth trajectory.
Base case
PR base case PE valuation
A base case PE valuation for PR estimates a fair value of about $30.31 per share, against a current price of $19.51. The model assumes 16.5% annual earnings growth, a 24x target PE multiple, and a 10% discount rate.
Intrinsic Value
$30.31
Margin of safety
+35.6%
Expected annual return
+9.2%
Base case assumptions: 16.5% annual earnings growth, 24x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 PR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Permian Resources Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
24.4x
PEG Ratio
n/m
Earnings Yield
4.10%
ROE (TTM)
6.3%
Revenue/Share (TTM)
$6.25
Dividend Yield
3.13%
Debt/Equity
0.33x
Frequently Asked Questions
What is the PE ratio of PR?
The trailing twelve-month PE ratio of PR reflects how much investors pay per dollar of Permian Resources Corporation's earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is PR overvalued based on PE ratio?
PR's PE of 24.4x combined with a PEG ratio of -0.51 provides a growth-adjusted perspective. PR has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 PR stock using PE ratio?
To value Permian Resources Corporation using PE: (1) Compare the current PE (24.4x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-0.51) 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 PR?
PR's PEG ratio is -0.51, calculated by dividing the PE ratio (24.4x) by the expected earnings growth rate. Because PR has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PR stock valuation?
PE ratio gives a quick relative read — how PR 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 PR 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 PR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.