CNOOC Limited

DB:NC2B Stock Report

Market Cap: €104.8b

CNOOC Valuation

Is NC2B 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 NC2B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NC2B (€2.18) is trading below our estimate of fair value (€6.7)

Significantly Below Fair Value: NC2B is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NC2B?

Key metric: As NC2B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NC2B. This is calculated by dividing NC2B's market cap by their current earnings.
What is NC2B's PE Ratio?
PE Ratio5.3x
EarningsCN¥142.86b
Market CapCN¥790.79b

Price to Earnings Ratio vs Peers

How does NC2B's PE Ratio compare to its peers?

The above table shows the PE ratio for NC2B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
COP ConocoPhillips
13x0.6%US$128.8b
PXD Pioneer Natural Resources
12.9x0.7%US$62.5b
EOG EOG Resources
10.7x-2.7%US$76.2b
CNQ Canadian Natural Resources
13.5x2.9%CA$101.9b
NC2B CNOOC
5.3x-1.7%€849.3b

Price-To-Earnings vs Peers: NC2B is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does NC2B's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NC2B 5.3xIndustry Avg. 8.7xNo. of Companies18PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NC2B is good value based on its Price-To-Earnings Ratio (5.3x) compared to the European Oil and Gas industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is NC2B'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.

NC2B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: NC2B is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).

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 NC2B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€2.80
0%
19.2%€3.87€1.08n/a18
Nov ’25€2.18
€2.75
+26.0%
19.1%€3.81€1.06n/a18
Oct ’25€2.26
€2.71
+19.9%
19.0%€3.66€1.04n/a17
Sep ’25€2.46
€2.73
+11.2%
20.0%€3.67€1.06n/a16
Aug ’25€2.42
€2.65
+9.4%
20.1%€3.64€1.05n/a16
Jul ’25€2.72
€2.63
-3.2%
18.9%€3.34€1.06n/a16
Jun ’25€2.46
€2.54
+3.3%
19.1%€3.32€1.05n/a16
May ’25€2.40
€2.54
+5.8%
19.1%€3.35€1.06n/a16
Apr ’25€2.14
€2.33
+8.8%
19.7%€3.29€1.06n/a15
Mar ’25€1.87
€1.97
+5.6%
15.4%€2.56€1.06n/a16
Feb ’25€1.73
€1.97
+14.0%
15.3%€2.58€1.07n/a16
Jan ’25€1.51
€1.93
+27.5%
17.1%€2.75€1.06n/a16
Dec ’24€1.50
€1.93
+28.5%
14.5%€2.71€1.36n/a16
Nov ’24€1.56
€1.96
+25.9%
14.2%€2.75€1.40€2.1816
Oct ’24€1.68
€1.88
+11.7%
12.4%€2.33€1.28€2.2616
Sep ’24€1.58
€1.80
+13.8%
12.6%€2.27€1.24€2.4617
Aug ’24€1.48
€1.78
+20.0%
13.1%€2.33€1.21€2.4217
Jul ’24€1.30
€1.76
+35.5%
13.0%€2.32€1.22€2.7217
Jun ’24€1.41
€1.80
+27.8%
14.4%€2.42€1.21€2.4618
May ’24€1.49
€1.78
+19.3%
15.3%€2.40€1.20€2.4017
Apr ’24€1.39
€1.73
+24.8%
16.3%€2.20€1.00€2.1417
Mar ’24€1.34
€1.75
+31.1%
20.2%€2.62€1.01€1.8717
Feb ’24€1.33
€1.74
+30.5%
20.1%€2.61€1.00€1.7317
Jan ’24€1.20
€1.75
+45.9%
17.9%€2.37€1.00€1.5117
Dec ’23€1.22
€1.73
+42.1%
17.7%€2.35€1.00€1.5017
Nov ’23€1.22
€1.80
+47.7%
17.5%€2.43€1.04€1.5617

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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