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ARC Resources Ltd
TSX:ARX

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ARC Resources Ltd
TSX:ARX
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Price: 31.97 CAD 1.91% Market Closed
Market Cap: CA$18.1B

EV/GP

5.1
Current
18%
More Expensive
vs 3-y average of 4.3

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
5.1
=
Enterprise Value
CA$17.4B
/
Gross Profit
CA$4.2B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
5.1
=
Enterprise Value
CA$17.4B
/
Gross Profit
CA$4.2B

Valuation Scenarios

ARC Resources Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (4.3), the stock would be worth CA$27.02 (15% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-30%
Maximum Upside
+30%
Average Downside
5%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 5.1 CA$31.97
0%
3-Year Average 4.3 CA$27.02
-15%
5-Year Average 3.6 CA$22.4
-30%
Industry Average 4.8 CA$30.42
-5%
Country Average 6.6 CA$41.67
+30%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in Canada
Percentile
39th
Based on 1 947 companies
39th percentile
5.1
Low
0.1 — 3.8
Typical Range
3.8 — 10.6
High
10.6 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 3.8
Median 6.6
70th Percentile 10.6
Max 259 067.6

ARC Resources Ltd
Glance View

ARC Resources Ltd., a prominent Canadian energy company, has carved out a significant niche in the natural resource sector, specializing primarily in oil and natural gas production. Born from a lineage of strategic acquisitions and capital discipline, ARC has honed its operations across the Montney formation, a prolific shale basin in Western Canada known for its rich reserves. The company's strategic placement helps it to maintain a diversified portfolio of high-quality, long-life assets, allowing ARC to weather the fluctuations of the volatile energy markets. This focus on premier assets is complemented by a robust technological capability that enhances extraction efficiency and supports sustainable practices, fostering a balance between financial performance and environmental stewardship. With a business model heavily reliant on the extraction, processing, and sale of hydrocarbons, ARC Resources generates revenue by selling natural gas and oil in both domestic and international markets. Its operational strategy emphasizes maximizing cash flow and shareholder value through prudent cost management and capital allocation. By employing advanced drilling techniques and leveraging economies of scale, ARC optimizes production rates and lowers per-unit costs, driving profitability. Additionally, the company adheres to a systematic hedging program, safeguarding against price volatility and ensuring stable financial performance. This blend of strategic asset management, technological investment, and risk mitigation frames ARC Resources as a resilient player in the energy landscape, poised to adapt to the shifting dynamics of the global market.

ARX Intrinsic Value
33.47 CAD
Undervaluation 4%
Intrinsic Value
Price CA$31.97
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