Cenovus develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada with refining operations in the United States. The company was founded in 2009 and is based in Calgary, Canada.
CVE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CVE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cenovus Energy Inc ranked in the 83th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Cenovus Energy Inc ended up being:
The company has produced more trailing twelve month cash flow than 83.61% of its sector Energy.
Cenovus Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 74 -- greater than 95.99% of US stocks with positive free cash flow.
Cenovus Energy Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.83. This coverage rate is greater than that of only 19.51% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CVE, try HMLP, TOT, CAPL, MMLP, and WES.
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In this article you are going to find out whether hedge funds think Cenovus Energy Inc (NYSE:CVE) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]