Petróleo Brasileiro S.A. - Petrobras

BOVESPA:PETR4 Stock Report

Market Cap: R$485.3b

Petróleo Brasileiro - Petrobras Valuation

Is PETR4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 PETR4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PETR4 (R$36.61) is trading below our estimate of fair value (R$38.88)

Significantly Below Fair Value: PETR4 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 PETR4?

Other financial metrics that can be useful for relative valuation.

PETR4 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/Revenue1.5x
Enterprise Value/EBITDA3.1x
PEG Ratio-2.7x

Price to Earnings Ratio vs Peers

How does PETR4's PE Ratio compare to its peers?

The above table shows the PE ratio for PETR4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8x
386 China Petroleum & Chemical
10.2x5.6%HK$798.4b
10.8x3.0%UK£79.1b
EQNR Equinor
8.7x-5.5%kr883.6b
GAZP Gazprom
2.2xn/a₽4.7t
PETR4 Petróleo Brasileiro - Petrobras
4.3x-1.6%R$485.3b

Price-To-Earnings vs Peers: PETR4 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (10.5x).


Price to Earnings Ratio vs Industry

How does PETR4's PE Ratio compare vs other companies in the Global Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PETR4 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the Global Oil and Gas industry average (10.5x).


Price to Earnings Ratio vs Fair Ratio

What is PETR4'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.

PETR4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ratio8.7x

Price-To-Earnings vs Fair Ratio: PETR4 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the estimated Fair Price-To-Earnings Ratio (8.7x).


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 PETR4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$36.61
R$42.34
+15.6%
9.2%R$47.00R$34.00n/a10
May ’25R$42.02
R$42.54
+1.2%
9.2%R$47.00R$34.00n/a10
Apr ’25R$37.65
R$40.71
+8.1%
8.2%R$45.00R$34.00n/a10
Mar ’25R$40.18
R$42.14
+4.9%
11.4%R$48.00R$34.00n/a10
Feb ’25R$41.57
R$39.85
-4.1%
9.8%R$48.00R$34.00n/a10
Jan ’25R$37.24
R$39.55
+6.2%
8.5%R$45.00R$34.00n/a10
Dec ’24R$35.67
R$39.68
+11.2%
8.7%R$45.00R$34.00n/a10
Nov ’24R$35.12
R$40.07
+14.1%
8.8%R$45.20R$34.00n/a10
Oct ’24R$34.64
R$35.77
+3.3%
16.3%R$45.00R$26.00n/a11
Sep ’24R$32.63
R$35.77
+9.6%
16.3%R$45.00R$26.00n/a11
Aug ’24R$30.60
R$33.43
+9.3%
13.8%R$41.90R$26.00n/a9
Jul ’24R$29.53
R$33.22
+12.5%
15.9%R$41.00R$26.00n/a9
Jun ’24R$26.96
R$30.87
+14.5%
17.4%R$43.00R$22.00n/a11
May ’24R$23.70
R$30.38
+28.2%
18.5%R$43.00R$20.00R$42.0212
Apr ’24R$23.45
R$30.83
+31.5%
18.4%R$43.00R$20.00R$37.6512
Mar ’24R$25.30
R$32.32
+27.7%
17.9%R$43.00R$22.00R$40.1812
Feb ’24R$25.71
R$32.82
+27.6%
19.0%R$43.00R$22.00R$41.5712
Jan ’24R$24.50
R$34.26
+39.9%
19.8%R$46.50R$22.00R$37.2411
Dec ’23R$25.59
R$37.24
+45.5%
19.8%R$53.00R$22.00R$35.6712
Nov ’23R$29.86
R$40.87
+36.9%
13.1%R$53.00R$34.00R$35.1212
Oct ’23R$29.80
R$41.41
+39.0%
16.2%R$53.00R$31.70R$34.6411
Sep ’23R$33.85
R$41.43
+22.4%
16.1%R$53.00R$31.90R$32.6311
Aug ’23R$33.68
R$41.55
+23.4%
15.6%R$53.00R$33.70R$30.6010
Jul ’23R$28.53
R$42.63
+49.4%
14.1%R$53.00R$31.30R$29.5310
Jun ’23R$30.02
R$42.46
+41.4%
12.1%R$51.50R$36.10R$26.9610
May ’23R$30.28
R$42.11
+39.1%
13.9%R$51.50R$36.00R$23.708

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


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.