Woodside Energy Group Ltd

ASX:WDS Stock Report

Market Cap: AU$44.7b

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

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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$23.55) is trading below our estimate of fair value (A$28.74)

Significantly Below Fair Value: WDS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As WDS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WDS. This is calculated by dividing WDS's market cap by their current earnings.
What is WDS's PE Ratio?
PE Ratio15.1x
EarningsUS$1.86b
Market CapUS$27.97b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.6x
STO Santos
10.3x11.2%AU$20.7b
KAR Karoon Energy
2.6x-13.5%AU$1.0b
HZN Horizon Oil
7.1x4.2%AU$292.8m
YAL Yancoal Australia
6.5x0.6%AU$8.3b
WDS Woodside Energy Group
15.1x-2.7%AU$44.7b

Price-To-Earnings vs Peers: WDS is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (6.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FAR FAR
0.8xn/aUS$30.05m
IKW Ikwezi Mining
1.7xn/aUS$12.55m
XST Xstate Resources
0.7xn/aUS$1.89m
No more companies available in this PE range
WDS 15.1xIndustry Avg. 11.3xNo. of Companies4PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WDS is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the Australian Oil and Gas industry average (11.3x).

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 Ratio15.1x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: WDS is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).

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$23.55
AU$29.95
+27.2%
14.7%AU$40.40AU$21.56n/a14
Dec ’25AU$24.51
AU$29.55
+20.6%
13.7%AU$39.95AU$23.59n/a14
Nov ’25AU$24.05
AU$30.01
+24.8%
16.9%AU$45.55AU$23.28n/a14
Oct ’25AU$25.13
AU$29.84
+18.8%
15.6%AU$44.18AU$23.06n/a15
Sep ’25AU$27.19
AU$30.82
+13.3%
14.9%AU$44.88AU$24.95n/a15
Aug ’25AU$28.02
AU$33.07
+18.0%
12.9%AU$45.53AU$28.33n/a15
Jul ’25AU$28.25
AU$32.31
+14.4%
13.9%AU$43.52AU$23.21n/a15
Jun ’25AU$27.70
AU$32.12
+16.0%
14.0%AU$43.71AU$23.31n/a15
May ’25AU$27.50
AU$32.31
+17.5%
14.1%AU$44.01AU$23.47n/a15
Apr ’25AU$30.50
AU$33.02
+8.3%
14.1%AU$45.23AU$24.03n/a15
Mar ’25AU$30.85
AU$32.92
+6.7%
13.3%AU$45.13AU$25.85n/a15
Feb ’25AU$32.25
AU$34.41
+6.7%
12.8%AU$45.14AU$28.12n/a11
Jan ’25AU$31.06
AU$33.63
+8.3%
13.9%AU$44.05AU$26.06n/a13
Dec ’24AU$30.84
AU$34.73
+12.6%
12.4%AU$43.29AU$25.99AU$24.5115
Nov ’24AU$34.71
AU$36.78
+6.0%
10.3%AU$44.63AU$31.15AU$24.0515
Oct ’24AU$36.49
AU$38.09
+4.4%
10.3%AU$47.30AU$32.89AU$25.1316
Sep ’24AU$37.60
AU$38.14
+1.4%
10.5%AU$47.40AU$32.96AU$27.1917
Aug ’24AU$38.18
AU$37.78
-1.0%
11.0%AU$45.76AU$31.53AU$28.0217
Jul ’24AU$34.44
AU$37.62
+9.2%
10.1%AU$45.63AU$32.51AU$28.2517
Jun ’24AU$34.16
AU$38.05
+11.4%
11.0%AU$46.62AU$32.63AU$27.7017
May ’24AU$33.92
AU$37.26
+9.9%
11.4%AU$45.93AU$30.29AU$27.5017
Apr ’24AU$33.34
AU$38.22
+14.7%
10.6%AU$46.77AU$33.51AU$30.5017
Mar ’24AU$36.80
AU$38.52
+4.7%
9.8%AU$46.62AU$33.59AU$30.8517
Feb ’24AU$35.75
AU$38.00
+6.3%
8.3%AU$44.12AU$33.26AU$32.2517
Jan ’24AU$35.44
AU$39.17
+10.5%
8.8%AU$45.13AU$34.04AU$31.0617
Dec ’23AU$36.65
AU$37.64
+2.7%
9.3%AU$44.18AU$31.97AU$30.8416

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 04:55
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Woodside Energy Group Ltd is covered by 28 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Chris MearsAPP Securities Pty Ltd.
Ishan MajumdarBaptista Research
Russell WrightBarclay Pearce Capital Pty Limited