Woodside Energy Group Ltd

BATS-CHIXE:WDSL Stock Report

Market Cap: UK£23.4b

Woodside Energy Group Valuation

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

Below Fair Value: WDSL (£12.5) is trading below our estimate of fair value (£34.55)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WDSL. This is calculated by dividing WDSL's market cap by their current earnings.
What is WDSL's PE Ratio?
PE Ratio15.9x
EarningsUS$1.86b
Market CapUS$29.54b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WDSL 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
46.8x14.4%UK£3.6b
ITH Ithaca Energy
12.8x-9.3%UK£1.6b
ENOG Energean
8.6x7.0%UK£1.9b
SEPL Seplat Energy
19.6x13.4%UK£1.3b
WDSL Woodside Energy Group
15.9x-2.1%UK£45.8b

Price-To-Earnings vs Peers: WDSL is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does WDSL'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
1xn/aUS$20.07m
No more companies available in this PE range
No. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WDSL is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the UK Oil and Gas industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is WDSL'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.

WDSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio15x

Price-To-Earnings vs Fair Ratio: WDSL is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

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 WDSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£12.50
UK£15.25
+22.0%
17.5%UK£23.47UK£11.92n/a14
Nov ’25UK£12.06
UK£15.25
+26.5%
17.1%UK£23.28UK£11.81n/a14
Oct ’25UK£13.38
UK£15.41
+15.2%
15.6%UK£22.81UK£11.90n/a15
Sep ’25UK£13.91
UK£15.91
+14.4%
14.9%UK£23.17UK£12.88n/a15
Aug ’25UK£14.00
UK£16.83
+20.2%
12.9%UK£23.17UK£14.42n/a15
Jul ’25UK£14.94
UK£16.97
+13.6%
13.9%UK£22.86UK£12.19n/a15
Jun ’25UK£14.40
UK£16.73
+16.2%
14.0%UK£22.76UK£12.14n/a15
May ’25UK£14.02
UK£16.90
+20.5%
14.1%UK£23.01UK£12.27n/a15
Apr ’25UK£15.84
UK£17.05
+7.6%
14.1%UK£23.35UK£12.41n/a15
Mar ’25UK£15.96
UK£16.98
+6.4%
13.3%UK£23.29UK£13.34n/a15
Feb ’25UK£16.52
UK£17.82
+7.9%
12.8%UK£23.39UK£14.57n/a11
Jan ’25UK£16.60
UK£17.79
+7.2%
13.9%UK£23.30UK£13.78n/a13
Dec ’24UK£16.16
UK£18.15
+12.3%
12.4%UK£22.62UK£13.58n/a15
Nov ’24UK£18.17
UK£19.35
+6.5%
10.3%UK£23.48UK£16.39UK£12.0615
Oct ’24UK£19.13
UK£20.06
+4.9%
10.3%UK£24.91UK£17.32UK£13.3816
Sep ’24UK£19.29
UK£19.43
+0.7%
10.5%UK£24.14UK£16.79UK£13.9117
Aug ’24UK£19.68
UK£19.55
-0.7%
11.0%UK£23.68UK£16.31UK£14.0017
Jul ’24UK£18.26
UK£19.73
+8.1%
10.1%UK£23.93UK£17.05UK£14.9417
Jun ’24UK£18.06
UK£20.08
+11.2%
11.0%UK£24.60UK£17.22UK£14.4017
May ’24UK£17.97
UK£19.62
+9.2%
11.4%UK£24.18UK£15.95UK£14.0217
Apr ’24UK£18.13
UK£20.77
+14.6%
10.6%UK£25.41UK£18.21UK£15.8417
Mar ’24UK£20.64
UK£21.54
+4.4%
9.8%UK£26.08UK£18.78UK£15.9617
Feb ’24UK£20.46
UK£21.80
+6.5%
8.3%UK£25.31UK£19.08UK£16.5217
Jan ’24UK£19.78
UK£21.69
+9.7%
8.8%UK£25.00UK£18.85UK£16.6017
Dec ’23UK£20.16
UK£20.94
+3.9%
9.3%UK£24.59UK£17.79UK£16.1616
Nov ’23UK£20.66
UK£20.97
+1.5%
10.5%UK£27.35UK£18.21UK£18.1716

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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