Is It Time To Reassess Permian Resources (PR) After Its Strong One Year Share Price Run?

Simply Wall St.04-16

Wondering whether Permian Resources at around US$20.01 is giving you value or asking too much for its recent story? This breakdown is designed to help you judge the price with clear, grounded metrics....

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This breakdown is designed to help you judge the price with clear, grounded metrics....</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-time-to-reassess-permian-resources-pr-after-its-strong\">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 Time To Reassess Permian Resources (PR) After Its Strong One Year Share Price Run?</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 Time To Reassess Permian Resources (PR) After Its Strong One Year Share Price Run?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-16 04:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-time-to-reassess-permian-resources-pr-after-its-strong><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering whether Permian Resources at around US$20.01 is giving you value or asking too much for its recent story? This breakdown is designed to help you judge the price with clear, grounded metrics....</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-time-to-reassess-permian-resources-pr-after-its-strong\">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":"DCF","symbol_name":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/energy/nyse-pr/permian-resources/news/is-it-time-to-reassess-permian-resources-pr-after-its-strong","article_id":"2627258216","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-time-to-reassess-permian-resources-pr-after-its-strong","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2627258216","pubTimestamp":1776284099,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering whether Permian Resources at around US$20.01 is giving you value or asking too much for its recent story? This breakdown is designed to help you judge the price with clear, grounded metrics.\nThe stock has recently seen a 6.5% decline over the last 7 days, a 3.4% return over the last 30 days, a 39.0% return year to date, and an 89.1% return over the last year, with a very large 5 year return that sits close to 5x.\nRecent coverage has focused on Permian Resources as an Oil and Gas...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4213":"石油与天然气的勘探与生产","PR":"Permian Resources Corp"},"translate_title":"二叠纪资源公司(PR)股价强劲一年后，是时候重新评估其股价了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"PR":1.5},"content_text":"Wondering whether Permian Resources at around US$20.01 is giving you value or asking too much for its recent story? This breakdown is designed to help you judge the price with clear, grounded metrics. The stock has recently seen a 6.5% decline over the last 7 days, a 3.4% return over the last 30 days, a 39.0% return year to date, and an 89.1% return over the last year, with a very large 5 year return that sits close to 5x. Recent coverage has focused on Permian Resources as an Oil and Gas producer and how investors are weighing its position within the sector against broader energy themes. This context helps explain why the share price has moved sharply over different time frames as views on risk and opportunity have shifted. On Simply Wall St's 6 point valuation framework, Permian Resources scores a 5 out of 6. The next sections will break down how methods like DCF and multiples stack up, then finish with a broader way to think about what the market might really be pricing in.  Permian Resources delivered 89.1% 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 company could be worth by projecting its future cash flows and discounting them back to today using a required return. It focuses on the cash that might be available to shareholders rather than accounting profits. For Permian Resources, Simply Wall St uses a 2 Stage Free Cash Flow to Equity model based on projected free cash flows in $. The latest twelve month free cash flow is about $548.3 million. Analyst inputs and extrapolated estimates point to free cash flow of around $2.43b by 2030, with a series of annual projections between 2026 and 2035 that gradually move from analyst forecasts to modelled growth. When all those projected cash flows are discounted back, the model arrives at an estimated intrinsic value of about $65.93 per share, compared with the current share price around $20.01. That gap implies the stock is 69.6% undervalued on this DCF view, which is a wide margin for a single model output. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Permian Resources is undervalued by 69.6%. Track this in your watchlist or portfolio, or discover 57 more high quality undervalued stocks. PR Discounted Cash Flow as at Apr 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 a profitable company, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. This makes it a useful cross check against the DCF output. Higher growth expectations and lower perceived risk usually justify a higher P/E, while slower growth or higher risk tend to anchor a lower, more conservative multiple. Permian Resources currently trades on a P/E of about 17.89x. That sits above the Oil and Gas industry average of roughly 14.68x, but below the peer group average of around 23.60x. On a simple comparison, the stock is priced between sector and peer levels. Simply Wall St also calculates a Fair Ratio of 22.05x for Permian Resources. This is a proprietary estimate of the P/E that could be reasonable given factors such as the company’s earnings growth profile, profit margins, risk characteristics, industry, and market cap. Because it blends these company specific inputs instead of relying purely on broad peer or industry averages, it can give a more tailored reference point for the multiple. Comparing the Fair Ratio of 22.05x with the actual P/E of 17.89x shows the shares trading below that Fair Ratio benchmark. Result: UNDERVALUED NYSE:PR P/E Ratio as at Apr 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 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 let you attach a clear story to the numbers by linking your view of Permian Resources' business drivers to a set of revenue, earnings and margin assumptions. This is then turned into a Fair Value that you can compare with the current price to decide whether the stock looks attractive or stretched. Because Narratives on the Community page update automatically when new data, news or earnings are added, you can see in real time how different viewpoints line up. For example, one user Narrative might anchor on a Fair Value around US$19.00 with slower growth and tighter margins, while another leans toward about US$25.00 or the analyst consensus of roughly US$23.90 based on stronger free cash flow and capital flexibility. This gives you a simple way to decide which story you find more reasonable and how that lines up with where shares trade today. 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 Implied discount vs this Fair Value: about 20.0% undervalued at the last close of US$20.01 Revenue growth assumption: 22.28%  Focus on very low operating costs in the Delaware Basin and falling drilling and completion costs that support a cost advantage against higher cost peers. Emphasis on a sizeable proved reserve base and multi year drilling runway, combined with a balance sheet at 0.8x Net Debt/EBITDAX and an investment grade rating. Capital is spread across dividends, bolt on M&A, debt reduction and buybacks, with a 2026 plan that targets modest production growth and lower capex to support free cash flow per share.  🐻 Permian Resources Bear Case Fair Value: US$19.00 Implied premium vs this Fair Value: about 5.3% overvalued at the last close of US$20.01 Revenue growth assumption: 4.78%  Highlights long term pressure from energy transition trends, ESG mandates and regulation that could affect oil demand, access to capital and valuation multiples. Points to risks around leverage, acquisition led growth, potential well productivity decline, cost inflation and environmental constraints that may weigh on margins over time. Uses a Fair Value anchored to the more bearish analyst targets, where the current P/E and required future multiple leave limited room if growth or profitability fall short.  If you want to see how these viewpoints connect with the full set of community and analyst assumptions, including detailed earnings and cash flow paths, there is a dedicated page that pulls them together in one place, alongside your own scenario tools: See what the community is saying about Permian Resources. 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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