Is Ovintiv, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Ovintiv, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 6, an EV to EBITDA ratio of 3.62, and a Price to Book Value of 0.98, which suggest that while the company is generating returns, its valuation remains high relative to its earnings and book value.
In comparison to peers, Ovintiv's P/E ratio of 6.15 is significantly lower than EQT Corp.'s P/E of 85.64, indicating a stark valuation disparity, while Marathon Oil Corp. also shows a higher P/E of 15.00. Despite a recent decline in stock price, Ovintiv's long-term performance over the past five years has been strong, with a return of 274.86%, although it has underperformed the S&P 500 in the last year and three years.