ARC Resources Ltd.

Canada Country flag Canada
Sector: Exploration & Production
Ticker: ARX
Factsheet Factsheet

Market multiple valuation of ARC Resources Ltd. ( ARX | CAN)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of ARC Resources Ltd. is significantly higher than the median of its peer group: around 11.00. The company valuation of ARC Resources Ltd. according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of ARC Resources Ltd. is significantly higher than the average of its sector (Exploration & Production): 9.94. The company valuation of ARC Resources Ltd. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of ARC Resources Ltd. is significantly lower than its historical 5-year average: 58.1. The (current) company valuation of ARC Resources Ltd. is therefore way below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2017P/E NTM
ARC Resources Ltd.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Exploration & Production-1.7810.179.94
S&P/TSX15.7217.9617.09
Canada-3.7012.5913.16
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Beta (Ref: S&P/TSX)
Levered betaUnlevered beta
1-Year1.501.43
2-Year1.701.63
3-Year1.821.74
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Stock Perf excl. Dividends (in CAD)
ARXS&P/TSXRel. Perf.
Year-to-Date-22.4%1.1%-23.5%
1-Week1.9%1.9%0.0%
1-Month13.4%3.1%10.3%
1-Year-18.4%4.4%-22.8%
3-Year-39.6%2.1%-41.8%
5-Year-26.3%24.8%-51.1%
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International Peers - ARC Resources Ltd.
Company NameCtryMarket
Cap.
last (mUSD)
ARC Resources Ltd.CAN5 142
International Peers Median1.29
Suncor Energy Inc.CAN56 642
Royal Dutch Shell PlcGBR247 585
Petroleo Brasileiro SABRA66 604
AltaGas Ltd.CAN3 964
Baytex Energy Corp.CAN686
GPRV Analysis
ARC Resources Ltd.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Quotes Chart

1-Year Rebased Stock Chart

  • ARC Resources Ltd.
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Did you know ?

On the Infinancials platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).