Is Ovintiv, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Ovintiv, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its P/E ratio of 6, which is substantially lower than peers like Antero Resources Corp. with a P/E of 17.26, and Range Resources Corp. at 11.61. Additionally, Ovintiv's EV to EBITDA ratio stands at 3.62, while Antero's is much higher at 8.49, further emphasizing the disparity in valuation within the industry.
Despite a strong 5-year return of 312.17%, which outperformed the S&P 500's 96.61% return over the same period, the recent performance shows a decline with a 3-year return of -15.24% compared to the S&P 500's 70.41%. This suggests that while Ovintiv has had historical gains, its current valuation metrics and recent performance trends indicate it may not be a favorable investment at this time.