Is It Time To Revisit California Resources (CRC) After Recent Share Price Weakness?

Simply Wall St

Fri, January 9, 2026 at 1:10 AM EST 4 min read

• If you are wondering whether California Resources at around US$46.58 is priced attractively or not, this breakdown will help you judge the value for yourself.

• The stock has had a mixed run, with a 4.2% gain over the last 7 days, a 1.9% decline over 30 days, a modest 0.4% return year to date, and an 8.4% decline over the past year, set against 13.0% and 103.1% returns over the last 3 and 5 years.

• Recent coverage has focused on California Resources as an energy name that investors watch closely as they reassess risk and opportunity in the sector. This context helps frame the recent short term moves against a longer track record that some investors may still be weighing.

• On our checks, California Resources scores a full 6 out of 6 for potential undervaluation. Next we will look at how different valuation methods arrive at that view, before finishing with a way to think about value that goes beyond the usual ratios.

Find out why California Resources’s -8.4% return over the last year is lagging behind its peers.

A Discounted Cash Flow, or DCF, model estimates what a company could be worth by projecting its future cash flows and then discounting those back to today’s value using a required rate of return.

For California Resources, the model used here is a 2 Stage Free Cash Flow to Equity approach. The company’s latest twelve month free cash flow is about $559.3 million. Analysts provide free cash flow estimates out to 2028, with Simply Wall St extrapolating beyond that to build a 10 year path. By 2035, the projected free cash flow used in the model is $559.3 million, with interim projections such as $401.2 million in 2026 and $437 million in 2028, all expressed in dollars and then discounted back to today.

Bringing all of those discounted cash flows together gives an estimated intrinsic value of about $134.65 per share. Compared with the recent share price of roughly $46.58, this output suggests the stock trades at a 65.4% discount to that intrinsic estimate, which screens as undervalued on this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests California Resources is undervalued by 65.4%. Track this in your watchlist or portfolio, or discover 881 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for California Resources.

For profitable companies, the P/E ratio is a straightforward way to connect what you pay for each share with the earnings that back it. It helps you see how many dollars of price the market is assigning to each dollar of current earnings.