Permian Resources Corporation (PR) Stock Valuation — DCF Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$19.51
Intrinsic Value
$21.71
+10.1% 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 valuation
A base case discounted cash flow model for PR estimates an intrinsic value of about $21.71 per share, against a current price of $19.51. The model assumes 16.6% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$21.71
Margin of safety
+10.1%
Expected annual return
+2.2%
Base case assumptions: 16.6% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
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)
$6.25
FCF/Share (TTM)
$0.42
ROIC (TTM)
n/m
ROE (TTM)
6.3%
P/FCF
41.2x
EV/EBITDA
5.3x
FCF Yield
2.43%
Debt/Equity
0.33x
Based on trailing twelve-month data, PR shows a free cash flow per share of $0.42 and a ROIC of n/m, key inputs for stock valuation using the DCF method. The P/FCF ratio of 41.2x and FCF yield of 2.43% 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 $0.42 in free cash flow per share. At the current price of $19.51, 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 41.2x with a free cash flow yield of 2.43%. This elevated P/FCF suggests the market is pricing in significant future growth. 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 ($0.42) 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 0.33x, 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.
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 0.33x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 5.3x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.