Is Ovintiv, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ovintiv, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued, with a P/E ratio of 6, which is significantly lower than its peers such as 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, again lower than Antero's 8.49, suggesting that the market may not be pricing in the company's potential as effectively as it does for its competitors.
The company's current price of 35.97 reflects a challenging performance, with a year-to-date return of -11.19% compared to the S&P 500's gain of 13.30%, and a 3-year return of -28.59% against the S&P's impressive 81.19%. This underperformance reinforces the notion that Ovintiv is currently overvalued relative to its market peers and broader market performance.