Santos Limited

DB:STS1 Stock Report

Market Cap: €11.8b

Santos Valuation

Is STS1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 STS1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€15.06
Fair Value
76.2% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: STS1 (€3.58) is trading below our estimate of fair value (€15.06)

Significantly Below Fair Value: STS1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STS1?

Key metric: As STS1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for STS1. This is calculated by dividing STS1's market cap by their current earnings.
What is STS1's PE Ratio?
PE Ratio11x
EarningsUS$1.22b
Market CapUS$13.42b

Price to Earnings Ratio vs Peers

How does STS1's PE Ratio compare to its peers?

The above table shows the PE ratio for STS1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average4.8x
DR0 Deutsche Rohstoff
3.7x-14.65%€174.3m
PTTEP PTT Exploration and Production
5.5x-7.30%฿395.0b
TATN PJSC Tatneft
4.6xn/a₽915.4b
1605 Inpex
5.3x-5.87%JP¥2.3t
STS1 Santos
11x9.44%€20.8b

Price-To-Earnings vs Peers: STS1 is expensive based on its Price-To-Earnings Ratio (11x) compared to the peer average (4.8x).

Price to Earnings Ratio vs Industry

How does STS1's PE Ratio compare vs other companies in the European Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
STS1 11.0xIndustry Avg. 9.3xNo. of Companies16PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STS1 is expensive based on its Price-To-Earnings Ratio (11x) compared to the European Oil and Gas industry average (9.3x).

Price to Earnings Ratio vs Fair Ratio

What is STS1'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.

STS1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: STS1 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

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 STS1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.66
€4.28
+16.98%
12.39%€5.64€3.62n/a13
May ’26€3.39
€4.27
+25.90%
12.51%€5.60€3.59n/a13
Apr ’26€3.87
€4.71
+21.50%
9.71%€5.88€4.02n/a14
Mar ’26€3.86
€4.87
+26.33%
9.38%€6.06€4.24n/a14
Feb ’26€4.17
€4.88
+17.15%
8.96%€6.06€4.21n/a14
Jan ’26€3.93
€5.03
+28.12%
8.39%€6.23€4.58n/a14
Dec ’25€4.05
€4.99
+23.28%
8.14%€6.14€4.51n/a14
Nov ’25€4.04
€5.18
+28.44%
14.19%€7.75€4.71n/a14
Oct ’25€4.27
€5.14
+20.31%
13.79%€7.58€4.55n/a14
Sep ’25€4.35
€5.17
+18.78%
13.19%€7.60€4.56n/a15
Aug ’25€4.77
€5.34
+11.98%
12.74%€7.73€4.67n/a15
Jul ’25€4.65
€5.24
+12.70%
12.12%€7.41€4.69n/a15
Jun ’25€4.54
€5.19
+14.21%
12.24%€7.31€4.63n/a15
May ’25€4.57
€5.21
+13.93%
12.04%€7.39€4.67€3.3915
Apr ’25€4.57
€5.20
+13.89%
12.25%€7.43€4.69€3.8715
Mar ’25€4.24
€5.19
+22.40%
12.40%€7.43€4.69€3.8615
Feb ’25€4.60
€5.42
+17.90%
13.56%€7.47€4.74€4.1711
Jan ’25€4.58
€5.31
+16.16%
13.41%€7.40€4.36€3.9313
Dec ’24€4.09
€5.30
+29.65%
10.84%€7.10€4.69€4.0515
Nov ’24€4.51
€5.39
+19.58%
11.11%€7.29€4.71€4.0415
Oct ’24€4.68
€5.53
+18.06%
11.01%€7.52€4.89€4.2715
Sep ’24€4.55
€5.43
+19.28%
10.59%€7.38€4.82€4.3516
Aug ’24€4.80
€5.46
+13.76%
11.59%€7.57€4.77€4.7716
Jul ’24€4.49
€5.47
+21.77%
11.54%€7.43€4.76€4.6516
Jun ’24€4.36
€5.54
+27.12%
11.64%€7.56€4.83€4.5416
May ’24€4.16
€5.43
+30.69%
11.49%€7.34€4.69€4.5716
AnalystConsensusTarget
Consensus Narrative from 13 Analysts
€4.19
Fair Value
14.5% undervalued intrinsic discount
13
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/27 22:34
End of Day Share Price 2025/05/27 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Santos Limited 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
Dale KoendersBarrenjoey Markets Pty Limited
Rob CrookstonBell Potter
Matt ChalmersBofA Global Research