Is It Too Late To Consider Permian Resources (PR) After A 60% One Year Surge?

Simply Wall St.03-27 10:12

Investors may be wondering if Permian Resources at around US$21.46 is offering good value right now, or if the easy gains are already behind it. The stock has posted returns of 7.5% over the last week...

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The stock has posted returns of 7.5% over the last week...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-too-late-to-consider-permian-resources-pr-after-a-60-o\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider Permian Resources (PR) After A 60% One Year Surge?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider Permian Resources (PR) After A 60% One Year Surge?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-27 10:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-too-late-to-consider-permian-resources-pr-after-a-60-o><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investors may be wondering if Permian Resources at around US$21.46 is offering good value right now, or if the easy gains are already behind it. The stock has posted returns of 7.5% over the last week...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-too-late-to-consider-permian-resources-pr-after-a-60-o\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4213","symbol_name":"石油与天然气的勘探与生产","start_time":0,"source_url":"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-too-late-to-consider-permian-resources-pr-after-a-60-o","article_id":"2622192718","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/1032000-choice1-main-header/1585186548616"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-too-late-to-consider-permian-resources-pr-after-a-60-o","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2622192718","pubTimestamp":1774577561,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Investors may be wondering if Permian Resources at around US$21.46 is offering good value right now, or if the easy gains are already behind it.\nThe stock has posted returns of 7.5% over the last week, 20.6% over the past month, 49.0% year to date and 60.2% over the past year. This puts recent performance firmly on investors' radar.\nRecent coverage has focused on Permian Resources as an oil and gas producer in the Permian Basin, with attention on how the company is positioning itself...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4213":"石油与天然气的勘探与生产","PR":"Permian Resources Corp","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"二叠纪资源(PR)一年飙升60%后，现在考虑是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"PR":1.5},"content_text":"Investors may be wondering if Permian Resources at around US$21.46 is offering good value right now, or if the easy gains are already behind it. The stock has posted returns of 7.5% over the last week, 20.6% over the past month, 49.0% year to date and 60.2% over the past year. This puts recent performance firmly on investors' radar. Recent coverage has focused on Permian Resources as an oil and gas producer in the Permian Basin, with attention on how the company is positioning itself operationally and financially in a sector that often reacts quickly to commodity sentiment. This context helps frame why traders and longer term investors alike may be reassessing the risk and reward profile behind the latest share price moves. Even after this run, the Simply Wall St valuation model gives Permian Resources a 4/6 valuation score. The next step is a closer look at how different methods assess its value and why there may be an even more useful way to think about valuation by the end of this article.  Permian Resources delivered 60.2% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry. AdvertisementApproach 1: Permian Resources Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by taking projected future cash flows and discounting them back to a present value. For Permian Resources, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $548.3 million. Analyst and extrapolated estimates in the Simply Wall St model point to free cash flow reaching about $2.6b by 2030, with annual projections supplied for the next decade and then discounted back to today in dollar terms. Bringing all of those discounted cash flows together gives an estimated intrinsic value of about $77.54 per share. Compared with the current share price around $21.46, the DCF output implies a 72.3% discount, which indicates that the stock appears significantly undervalued on this model alone. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Permian Resources is undervalued by 72.3%. Track this in your watchlist or portfolio, or discover 61 more high quality undervalued stocks. PR Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Permian Resources. Approach 2: Permian Resources Price vs Earnings For profitable companies, the P/E ratio is a useful way to link what you pay for each share to the earnings that back it. Investors usually accept a higher P/E when they expect stronger earnings growth or see lower perceived risk, and a lower P/E when growth expectations are modest or risks are higher. Permian Resources currently trades on a P/E of 18.5x. That sits above the Oil and Gas industry average of 16.4x, but well below the peer group average of 54.9x. Comparisons like these help set a rough context, although they can miss some company specific details. Simply Wall St’s Fair Ratio for Permian Resources is 20.7x. This is a proprietary estimate of what the P/E could be, given factors such as the company’s earnings growth profile, profit margins, industry, market cap and key risks. Because it incorporates these elements rather than just comparing against broad industry or peer averages, it can give a more tailored view of what “normal” might look like for this stock. On that basis, the current P/E of 18.5x sits below the Fair Ratio of 20.7x, which indicates that the shares may be undervalued on this metric. Result: UNDERVALUED NYSE:PR P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. Upgrade Your Decision Making: Choose your Permian Resources Narrative Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St’s Community page let you attach a clear story to your numbers by linking your view of Permian Resources, such as whether its low Delaware Basin costs and 0.8x net debt to EBITDAX create a durable cost advantage, or whether energy transition risks and leverage are more important, to specific forecasts for revenue growth, earnings, margins and a Fair Value that you can then compare directly with today’s share price. Each Narrative, whether it anchors on a higher Fair Value of about US$25.00 per share or a lower one around US$19.00, updates automatically as new news, earnings and guidance are incorporated, so you can quickly see when your own story still lines up with the data or when it might be time to reassess your timing. For Permian Resources, however, we will make it really easy for you with previews of two leading Permian Resources narratives: 🐂 Permian Resources Bull Case Fair Value: US$25.00 per share Implied discount to this Fair Value at US$21.46: about 14% Revenue growth assumption: 22.28%  Focuses on low lifting and drilling costs in the Delaware Basin that support a cost advantage versus higher cost peers. Highlights a long drilling runway and a balance sheet at around 0.8x net debt to EBITDAX, with an investment grade rating. Emphasizes flexible capital allocation across dividends, acquisitions, debt reduction and buybacks, all tied to a 2026 plan that aims for modest production growth with lower capex.  🐻 Permian Resources Bear Case Fair Value: US$19.00 per share Implied premium to this Fair Value at US$21.46: about 13% Revenue growth assumption: 4.78%  Flags long term pressures from energy transition policies, ESG driven capital constraints and potential regulatory headwinds. Points to risks around leverage, acquisition led growth, cost inflation and the potential for weaker well productivity over time. Builds a Fair Value based on lower revenue growth, slightly lower margins and a higher future P/E multiple than the sector, with analysts clustering around a range of US$19.00 to US$29.00.  Do you think there's more to the story for Permian Resources? Head over to our Community to see what others are saying! NYSE:PR 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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