Shell Valuation

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

Below Fair Value: SHELLA (€31.42) is trading below our estimate of fair value (€35.15)

Significantly Below Fair Value: SHELLA 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 SHELLA?

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

The above table shows the Price to Earnings ratio for SHELLA. This is calculated by dividing SHELLA's market cap by their current earnings.
What is SHELLA's PE Ratio?
PE Ratio13x
EarningsUS$15.64b
Market CapUS$203.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHELLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.9x
28.4x28.5%UK£61.7b
857 PetroChina
5.8x-3.8%HK$1.5t
CVX Chevron
17.5x7.0%US$290.5b
TTE TotalEnergies
8x0.1%€130.2b
SHELLA Shell
13x5.0%€161.4b

Price-To-Earnings vs Peers: SHELLA is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
INDI Indus Gas
0.9xn/aUS$17.23m
No more companies available in this PE range
No. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHELLA is expensive based on its Price-To-Earnings Ratio (13x) compared to the UK Oil and Gas industry average (8.9x).


Price to Earnings Ratio vs Fair Ratio

What is SHELLA'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.

SHELLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: SHELLA is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).


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 SHELLA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.42
€38.34
+22.0%
8.3%€44.02€31.50n/a15
Nov ’25€30.86
€37.56
+21.7%
7.3%€42.76€33.31n/a15
Oct ’25€30.18
€37.97
+25.8%
8.9%€45.87€32.62n/a16
Sep ’25€32.13
€38.27
+19.1%
8.4%€46.12€32.98n/a15
Aug ’25€34.31
€39.08
+13.9%
8.5%€47.33€33.73n/a15
Jul ’25€33.82
€38.32
+13.3%
7.7%€44.22€33.90n/a15
Jun ’25€32.81
€37.61
+14.7%
8.1%€43.72€33.51n/a15
May ’25€33.79
€36.72
+8.7%
8.9%€44.93€32.00n/a15
Apr ’25€30.98
€35.70
+15.2%
9.7%€44.95€30.30n/a15
Mar ’25€29.17
€35.15
+20.5%
10.4%€44.56€30.04n/a15
Feb ’25€29.68
€35.47
+19.5%
10.0%€44.42€30.21n/a15
Jan ’25€29.79
€34.70
+16.5%
10.5%€42.75€28.39n/a15
Dec ’24€30.45
€34.50
+13.3%
10.0%€42.87€28.47n/a15
Nov ’24€31.13
€34.53
+10.9%
10.7%€43.96€29.02€30.8615
Oct ’24€30.52
€34.46
+12.9%
9.2%€42.28€29.14€30.1816
Sep ’24€28.98
€33.74
+16.4%
9.3%€41.49€28.60€32.1316
Aug ’24€27.71
€33.36
+20.4%
10.5%€40.94€27.75€34.3118
Jul ’24€27.66
€33.50
+21.1%
9.5%€41.09€28.07€33.8219
Jun ’24€26.57
€33.41
+25.8%
9.3%€38.69€26.76€32.8120
May ’24€28.08
€32.45
+15.5%
8.4%€37.19€27.12€33.7921
Apr ’24€26.48
€32.66
+23.3%
9.9%€39.35€26.03€30.9821
Mar ’24€28.99
€33.28
+14.8%
10.0%€40.58€26.49€29.1720
Feb ’24€26.73
€32.81
+22.8%
10.2%€39.82€25.99€29.6821
Jan ’24€26.52
€33.37
+25.8%
9.7%€40.94€26.60€29.7920
Dec ’23€27.87
€32.94
+18.2%
8.6%€38.13€26.83€30.4520
Nov ’23€28.50
€34.56
+21.3%
8.9%€41.09€28.58€31.1320

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


Discover undervalued companies