TORM plc

DB:1T4 Stock Report

Market Cap: €2.1b

TORM Valuation

Is 1T4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1T4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1T4 (€22.38) is trading below our estimate of fair value (€56.83)

Significantly Below Fair Value: 1T4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1T4?

Key metric: As 1T4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1T4. This is calculated by dividing 1T4's market cap by their current earnings.
What is 1T4's PE Ratio?
PE Ratio3.1x
EarningsUS$719.37m
Market CapUS$2.22b

Price to Earnings Ratio vs Peers

How does 1T4's PE Ratio compare to its peers?

The above table shows the PE ratio for 1T4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.5x
VH2 Friedrich Vorwerk Group
19.5x12.9%€549.0m
CE2 CropEnergies
15.3x-7.5%€1.0b
CE2 CropEnergies
82.4xn/a€1.2b
ETG EnviTec Biogas
8.8xn/a€439.6m
1T4 TORM
3.1x-29.4%€15.8b

Price-To-Earnings vs Peers: 1T4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (31.5x).

Price to Earnings Ratio vs Industry

How does 1T4's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1T4 3.1xIndustry Avg. 8.3xNo. of Companies18PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1T4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the European Oil and Gas industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is 1T4'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.

1T4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: 1T4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).

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 1T4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€22.38
€32.45
+45.0%
18.1%€38.32€26.58n/a2
Nov ’25€24.08
€33.23
+38.0%
13.2%€39.20€28.74n/a3
Oct ’25€29.62
€35.89
+21.2%
8.4%€38.11€31.65n/a3
Sep ’25€33.28
€38.60
+16.0%
2.4%€39.86€37.66n/a3
Aug ’25€35.98
€38.38
+6.7%
1.0%€38.92€37.97n/a3
Jul ’25€36.60
€38.94
+6.4%
0.4%€39.05€38.74n/a3
Jun ’25€34.48
€38.04
+10.3%
1.8%€38.86€37.15n/a3
May ’25€32.28
€37.94
+17.5%
2.0%€38.94€37.13n/a3
Apr ’25€32.10
€37.35
+16.4%
2.9%€38.89€36.55n/a3
Mar ’25€30.86
€35.92
+16.4%
2.1%€36.92€34.89n/a4
Feb ’25€32.80
€35.11
+7.1%
0.9%€35.54€34.88n/a3
Jan ’25€27.46
€35.46
+29.1%
1.5%€36.10€34.84n/a3
Dec ’24€25.98
€35.46
+36.5%
1.5%€36.10€34.84n/a3
Nov ’24€29.56
€33.92
+14.7%
4.0%€35.40€32.12€24.083
Oct ’24€26.34
€33.23
+26.2%
1.8%€33.82€32.65€29.622
Sep ’24€23.20
€32.32
+39.3%
1.1%€32.84€32.03€33.283
Aug ’24€22.50
€34.29
+52.4%
5.0%€36.71€32.84€35.983
Jul ’24€21.74
€34.77
+59.9%
3.8%€36.62€33.54€36.603
Jun ’24€23.40
€35.05
+49.8%
3.7%€36.89€33.88€34.483
May ’24€27.58
€35.95
+30.3%
4.1%€37.13€33.89€32.283
Apr ’24€27.62
€35.44
+28.3%
10.2%€40.11€31.29€32.103
Mar ’24€33.88
€31.56
-6.9%
0.7%€31.71€31.25€30.863
Feb ’24€24.34
€31.28
+28.5%
0.04%€31.30€31.27€32.803
Jan ’24€26.60
€31.79
+19.5%
1.1%€32.03€31.32€27.463
Dec ’23€27.00
€32.56
+20.6%
2.7%€33.18€31.32€25.983
Nov ’23€26.96
€32.33
+19.9%
3.8%€34.06€31.26€29.563

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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