We’ve recently updated our valuation analysis.

BP Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BP. key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA3.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BP.'s PS Ratio compare to its peers?

BP. PS Ratio vs Peers
The above table shows the PS ratio for BP. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.6x
TTE TotalEnergies
0.5x-7.2%€117.7b
EQNR Equinor
0.8x-11.1%kr1.1t
SHEL Shell
0.5x-5.3%UK£159.5b
PETR4 Petróleo Brasileiro - Petrobras
0.7x-15.2%R$412.6b
0.4x-9.1%UK£80.4b

Price-To-Sales vs Peers: BP. is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: BP. is good value based on its Price-To-Sales Ratio (0.4x) compared to the UK Oil and Gas industry average (1.8x)


Price to Sales Ratio vs Fair Ratio

What is BP.'s PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BP. PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: BP. is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).


Share Price vs Fair Value

What is the Fair Price of BP. when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BP. (£4.33) is trading below our estimate of fair value (£5.03)

Significantly Below Fair Value: BP. is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

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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