TORM plc

LSE:0RG4 Stock Report

Market Cap: DKK 15.8b

TORM Valuation

Is 0RG4 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 0RG4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0RG4 (DKK163.6) is trading below our estimate of fair value (DKK404.15)

Significantly Below Fair Value: 0RG4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0RG4?

Key metric: As 0RG4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0RG4. This is calculated by dividing 0RG4's market cap by their current earnings.
What is 0RG4's PE Ratio?
PE Ratio3.1x
EarningsUS$719.37m
Market CapUS$2.22b

Price to Earnings Ratio vs Peers

How does 0RG4's PE Ratio compare to its peers?

The above table shows the PE ratio for 0RG4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.3x
NWF NWF Group
8.1x3.1%UK£73.7m
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
0RG4 TORM
3.1x-29.4%DKK 15.8b

Price-To-Earnings vs Peers: 0RG4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (12.3x).

Price to Earnings Ratio vs Industry

How does 0RG4'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
0RG4 3.1xIndustry Avg. 8.6xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0RG4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the UK Oil and Gas industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0RG4'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.

0RG4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio7.5x

Price-To-Earnings vs Fair Ratio: 0RG4 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (7.5x).

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 0RG4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentDKK 163.60
DKK 242.04
+47.9%
18.1%DKK 285.82DKK 198.26n/a2
Nov ’25DKK 182.04
DKK 247.81
+36.1%
13.2%DKK 292.37DKK 214.36n/a3
Oct ’25DKK 218.60
DKK 267.66
+22.4%
8.4%DKK 284.24DKK 236.06n/a3
Sep ’25DKK 245.00
DKK 287.95
+17.5%
2.4%DKK 297.33DKK 280.90n/a3
Aug ’25DKK 264.96
DKK 286.32
+8.1%
1.0%DKK 290.38DKK 283.28n/a3
Jul ’25DKK 268.16
DKK 290.41
+8.3%
0.4%DKK 291.27DKK 288.94n/a3
Jun ’25DKK 254.62
DKK 283.79
+11.5%
1.8%DKK 289.91DKK 277.19n/a3
May ’25DKK 237.00
DKK 283.07
+19.4%
2.0%DKK 290.53DKK 277.00n/a3
Apr ’25DKK 233.21
DKK 278.54
+19.4%
2.9%DKK 290.03DKK 272.57n/a3
Mar ’25DKK 230.96
DKK 267.75
+15.9%
2.1%DKK 275.20DKK 260.12n/a4
Feb ’25DKK 249.65
DKK 261.88
+4.9%
0.9%DKK 265.06DKK 260.16n/a3
Jan ’25DKK 203.00
DKK 264.56
+30.3%
1.5%DKK 269.36DKK 259.96n/a3
Dec ’24DKK 196.32
DKK 264.56
+34.8%
1.5%DKK 269.36DKK 259.96n/a3
Nov ’24DKK 218.47
DKK 253.19
+15.9%
4.0%DKK 264.23DKK 239.77DKK 182.043
Oct ’24DKK 193.42
DKK 247.87
+28.2%
1.8%DKK 252.21DKK 243.53DKK 218.602
Sep ’24DKK 173.70
DKK 240.93
+38.7%
1.1%DKK 244.81DKK 238.82DKK 245.003
Aug ’24DKK 169.95
DKK 255.34
+50.2%
5.0%DKK 273.34DKK 244.54DKK 264.963
Jul ’24DKK 164.20
DKK 258.96
+57.7%
3.8%DKK 272.75DKK 249.82DKK 268.163
Jun ’24DKK 176.20
DKK 261.11
+48.2%
3.7%DKK 274.76DKK 252.38DKK 254.623
May ’24DKK 210.29
DKK 267.91
+27.4%
4.1%DKK 276.70DKK 252.60DKK 237.003
Apr ’24DKK 209.04
DKK 263.74
+26.2%
10.2%DKK 298.52DKK 232.86DKK 233.213
Mar ’24DKK 254.20
DKK 235.06
-7.5%
0.7%DKK 236.19DKK 232.82DKK 230.963
Feb ’24DKK 177.16
DKK 232.67
+31.3%
0.04%DKK 232.82DKK 232.60DKK 249.653
Jan ’24DKK 200.80
DKK 236.49
+17.8%
1.1%DKK 238.25DKK 232.97DKK 203.003
Dec ’23DKK 201.87
DKK 242.22
+20.0%
2.7%DKK 246.84DKK 233.00DKK 196.323
Nov ’23DKK 203.04
DKK 240.58
+18.5%
3.8%DKK 253.48DKK 232.66DKK 218.473

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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