Vår Energi AS

BATS-CHIXE:VARO Stock Report

Market Cap: NOK 84.6b

Vår Energi Valuation

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

Below Fair Value: VARO (NOK33.86) is trading below our estimate of fair value (NOK44.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VARO. This is calculated by dividing VARO's market cap by their current earnings.
What is VARO's PE Ratio?
PE Ratio12.8x
EarningsUS$576.74m
Market CapUS$7.39b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VARO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
HBR Harbour Energy
45x14.4%UK£3.5b
ITH Ithaca Energy
19.2x-3.9%UK£1.7b
SEPL Seplat Energy
18.1x13.4%UK£1.2b
DEC Diversified Energy
5.3x2.4%UK£606.8m
VARO Vår Energi
12.8x16.7%NOK 84.6b

Price-To-Earnings vs Peers: VARO is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does VARO'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$19.03m
No more companies available in this PE range
No. of Companies4PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VARO is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the UK Oil and Gas industry average (9.3x).

Price to Earnings Ratio vs Fair Ratio

What is VARO'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.

VARO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VARO's Price-To-Earnings Fair Ratio for valuation analysis.

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 VARO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNOK 33.86
NOK 42.90
+26.7%
8.6%NOK 49.20NOK 34.34n/a14
Dec ’25NOK 37.18
NOK 42.33
+13.9%
8.6%NOK 48.56NOK 33.90n/a14
Nov ’25n/a
NOK 42.17
0%
8.6%NOK 48.25NOK 33.68n/a14
Oct ’25NOK 33.69
NOK 42.53
+26.2%
10.7%NOK 48.09NOK 33.05n/a14
Sep ’25NOK 35.77
NOK 43.22
+20.8%
12.3%NOK 52.97NOK 32.75n/a14
Aug ’25n/a
NOK 43.96
0%
11.6%NOK 53.12NOK 34.08n/a14
Jul ’25NOK 36.15
NOK 42.85
+18.5%
11.7%NOK 52.87NOK 33.19n/a14
Jun ’25n/a
NOK 41.70
0%
12.2%NOK 51.38NOK 32.69n/a14
May ’25n/a
NOK 42.85
0%
11.2%NOK 50.27NOK 34.23n/a13
Apr ’25n/a
NOK 40.65
0%
11.1%NOK 50.01NOK 32.26n/a13
Mar ’25n/a
NOK 38.99
0%
10.3%NOK 44.95NOK 31.52n/a11
Feb ’25NOK 29.91
NOK 38.79
+29.7%
10.3%NOK 44.99NOK 32.20n/a10
Jan ’25NOK 32.02
NOK 37.46
+17.0%
14.9%NOK 42.04NOK 23.76n/a9
Dec ’24NOK 34.52
NOK 39.46
+14.3%
14.8%NOK 43.83NOK 25.14NOK 37.189
Nov ’24n/a
NOK 40.67
0%
14.0%NOK 45.02NOK 25.83n/a10
Oct ’24n/a
NOK 36.96
0%
11.5%NOK 40.21NOK 25.80NOK 33.699
Sep ’24n/a
NOK 37.53
0%
12.2%NOK 41.50NOK 25.77NOK 35.779
Aug ’24n/a
NOK 35.88
0%
11.6%NOK 40.46NOK 24.59n/a10
Jul ’24NOK 27.94
NOK 36.94
+32.2%
12.9%NOK 44.90NOK 26.05NOK 36.1510
Jun ’24NOK 25.01
NOK 37.30
+49.1%
13.9%NOK 45.61NOK 26.03n/a11
May ’24NOK 27.79
NOK 37.01
+33.2%
14.5%NOK 47.03NOK 26.03n/a12
Apr ’24NOK 25.12
NOK 39.28
+56.4%
16.9%NOK 48.49NOK 25.39n/a12
Mar ’24NOK 29.08
NOK 40.22
+38.3%
16.7%NOK 48.29NOK 25.28n/a11
Feb ’24NOK 29.92
NOK 41.51
+38.7%
20.1%NOK 54.34NOK 24.14NOK 29.9111
Jan ’24NOK 33.10
NOK 43.69
+32.0%
14.8%NOK 52.68NOK 33.47NOK 32.0210
Dec ’23NOK 35.21
NOK 43.69
+24.1%
14.8%NOK 52.68NOK 33.47NOK 34.5210

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 01:22
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Vår Energi AS is covered by 18 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Lydia RainforthBarclays
Matthew SmithBofA Global Research
Jørgen LandeDanske Bank