We’ve recently updated our valuation analysis.

Woodside Energy Group Valuation

Is WDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WDS?

Other financial metrics that can be useful for relative valuation.

WDS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5x
Enterprise Value/EBITDA8.5x
PEG Ratio-1.6x

Price to Earnings Ratio vs Peers

How does WDS's PE Ratio compare to its peers?

The above table shows the PE ratio for WDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.2x
STO Santos
11.2x-12.1%AU$23.5b
BPT Beach Energy
6.7x10.9%AU$3.4b
WHC Whitehaven Coal
3.8x-18.5%AU$7.5b
YAL Yancoal Australia
2.9x-4.9%AU$7.8b
WDS Woodside Energy Group
14.7x-9.4%AU$68.8b

Price-To-Earnings vs Peers: WDS is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (6.2x).


Price to Earnings Ratio vs Industry

How does WDS's PE Ratio compare vs other companies in the AU Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-6.8%
n/an/an/a

Price-To-Earnings vs Industry: WDS is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the Australian Oil and Gas industry average (7.2x)


Price to Earnings Ratio vs Fair Ratio

What is WDS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WDS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: WDS is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).


Share Price vs Fair Value

What is the Fair Price of WDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WDS (A$36.26) is trading below our estimate of fair value (A$61.05)

Significantly Below Fair Value: WDS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WDS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$36.26
AU$37.97
+4.7%
8.4%AU$44.12AU$33.15n/a17
Jan ’24AU$35.44
AU$39.15
+10.5%
8.9%AU$45.13AU$34.04n/a17
Dec ’23AU$36.65
AU$37.61
+2.6%
9.4%AU$44.18AU$31.97n/a16
Nov ’23AU$36.81
AU$37.59
+2.1%
10.5%AU$49.03AU$32.65n/a16
Oct ’23AU$31.66
AU$38.71
+22.3%
9.1%AU$48.30AU$32.24n/a16
Sep ’23AU$33.47
AU$37.38
+11.7%
10.1%AU$46.23AU$30.86n/a16
Aug ’23AU$32.84
AU$35.87
+9.2%
10.3%AU$43.12AU$28.53n/a14
Jul ’23AU$30.45
AU$35.27
+15.8%
11.8%AU$41.23AU$29.40n/a13
Jun ’23AU$30.19
AU$34.67
+14.8%
9.3%AU$39.67AU$30.10n/a9
May ’23AU$31.15
AU$34.40
+10.4%
10.2%AU$40.31AU$29.73n/a14
Apr ’23AU$32.68
AU$32.35
-1.0%
13.0%AU$39.91AU$27.42n/a14
Mar ’23AU$28.68
AU$30.72
+7.1%
11.4%AU$39.64AU$25.80n/a14
Feb ’23AU$25.06
AU$30.50
+21.7%
13.2%AU$41.54AU$24.53AU$36.2613
Jan ’23AU$21.93
AU$29.19
+33.1%
15.1%AU$41.29AU$23.00AU$35.4413
Dec ’22AU$21.50
AU$29.51
+37.3%
15.2%AU$41.61AU$23.27AU$36.6513
Nov ’22AU$23.49
AU$28.70
+22.2%
15.0%AU$39.87AU$22.44AU$36.8113
Oct ’22AU$23.75
AU$27.37
+15.2%
17.2%AU$39.40AU$21.17AU$31.6612
Sep ’22AU$19.74
AU$28.05
+42.1%
19.0%AU$39.54AU$21.18AU$33.4712
Aug ’22AU$21.91
AU$29.12
+32.9%
14.7%AU$40.13AU$23.73AU$32.8415
Jul ’22AU$22.28
AU$29.64
+33.0%
14.9%AU$41.44AU$23.39AU$30.4515
Jun ’22AU$22.11
AU$28.17
+27.4%
16.5%AU$39.90AU$19.53AU$30.1915
May ’22AU$22.86
AU$28.00
+22.5%
16.5%AU$39.66AU$19.41AU$31.1515
Apr ’22AU$24.00
AU$29.14
+21.4%
16.0%AU$40.86AU$19.84AU$32.6815
Mar ’22AU$25.16
AU$27.43
+9.0%
15.9%AU$38.94AU$19.02AU$28.6816
Feb ’22AU$24.55
AU$28.01
+14.1%
19.6%AU$44.78AU$19.82AU$25.0615

Analyst Forecast: Target price is less than 20% higher than the current share price.


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