PVLEF (Po Valley Energy) Degree of Operating Leverage : 1.44 (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Po Valley Energy Degree of Operating Leverage?

Po Valley Energy PVLEF -15.82% Degree of Operating Leverage is 1.44 as of Dec. 2025. Among 904 Oil & Gas companies, Po Valley Energy ranks worse than 56.53% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Po Valley Energy's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 1.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Po Valley Energy's Degree of Operating Leverage or its related term are showing as below:

PVLEF's Degree of Operating Leverage is ranked worse than
56.53% of 904 companies
in the Oil & Gas industry
Industry Median: 0.915 vs PVLEF: 1.44

Po Valley Energy  (OTCPK:PVLEF) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Po Valley Energy Degree of Operating Leverage Related Terms


Po Valley Energy Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Po Valley Energy's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Po Valley Energy Degree of Operating Leverage Chart

Po Valley Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 1.46 1.44

Po Valley Energy Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 1.46 0.37 1.44

PVLEF vs COP, EOG, OXY: Degree of Operating Leverage Comparison

For the Oil & Gas E&P subindustry, Po Valley Energy's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Po Valley Energy Degree of Operating Leverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Po Valley Energy's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Po Valley Energy's Degree of Operating Leverage falls into.



Po Valley Energy Degree of Operating Leverage Calculation

Po Valley Energy's Degree of Operating Leverage for the quarter that ended in Dec. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 4.609 (Dec. 2025) / 3.607 (Dec. 2024) - 1 )/( 8.252 (Dec. 2025) / 6.831 (Dec. 2024) - 1 )
=0.2778/0.208
=1.34***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of 1.44 mean?
Po Valley Energy (PVLEF) has a Degree of Operating Leverage of 1.44 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Po Valley Energy and its competitors. According to the industry distribution chart, Po Valley Energy ranks #511 out of 904 companies in the Oil & Gas industry, placing it in the top 56.5%.
Is Po Valley Energy's Degree of Operating Leverage too high?
Po Valley Energy's current Degree of Operating Leverage is 1.44. The Oil & Gas industry median Degree of Operating Leverage is 0.92. Po Valley Energy's value of 1.44 is 57.4% above this industry median. Based on the distribution chart, Po Valley Energy ranks #511 out of 904 companies in the Oil & Gas industry, which is below the industry midpoint.
How does Po Valley Energy's Degree of Operating Leverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Po Valley Energy ranks #511 out of 904 companies for Degree of Operating Leverage. This places Po Valley Energy in the lower half of its industry. The industry median Degree of Operating Leverage is 0.92. Po Valley Energy's value of 1.44 is 57.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Oil & Gas company?
The median Degree of Operating Leverage among Oil & Gas companies is 0.92, based on 904 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Po Valley Energy's current Degree of Operating Leverage of 1.44 is 57.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Po Valley Energy and its competitors. For the Oil & Gas industry, the median Degree of Operating Leverage is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Po Valley Energy's current Degree of Operating Leverage is 1.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Po Valley Energy stock overvalued right now?
Po Valley Energy (PVLEF) has a current Degree of Operating Leverage of 1.44. The current Degree of Operating Leverage is 1.44 and 57.4% above the Oil & Gas industry median of 0.92. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Po Valley Energy (PVLEF), the current Degree of Operating Leverage is 1.44 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Po Valley Energy Business Description

Industry EnergyOil & Gas
Other Exchanges PVE:Australia
Address 191 St Georges Terrace, Level 5, Perth, WA, AUS, 6000
Po Valley Energy Ltd is an oil and gas exploration and development company. It is engaged in gas production through a portfolio of natural gas fields in northern Italy. The company's project portfolio comprises Podere Maiar (Selva), an onshore natural gas field in the eastern part of the Po Plain, in the Emilia Romagna region; and the Teodorico Project, located off the east coast of Italy, in the shallow waters of the Adriatic Sea. Po Valley generates all of its revenue from Gas sales contracts with its customers. Its operating business units are: Production, which generates maximum revenue, Exploration and evaluation, and Development. Geographically, all gas sales are generated in Italy.