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

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

Below Fair Value: BP. (£5.39) is trading below our estimate of fair value (£10)

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


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/Revenue0.7x
Enterprise Value/EBITDA3.2x
PEG Ratio-1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BP. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8x
SHEL Shell
12.1x3.6%UK£188.6b
PETR4 Petróleo Brasileiro - Petrobras
4x-9.6%R$514.0b
EQNR Equinor
7.1x-11.8%kr917.6b
386 China Petroleum & Chemical
8.8x4.2%HK$783.8b
7.3x-6.7%UK£88.9b

Price-To-Earnings vs Peers: BP. is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BP. is good value based on its Price-To-Earnings Ratio (7.3x) compared to the UK Oil and Gas industry average (7.5x).


Price to Earnings Ratio vs Fair Ratio

What is BP.'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.

BP. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: BP. is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).


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 BP. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.39
UK£6.15
+14.1%
17.7%UK£10.16UK£5.07n/a17
Apr ’25UK£4.96
UK£6.10
+23.0%
17.3%UK£10.03UK£5.03n/a17
Mar ’25UK£4.72
UK£6.00
+27.2%
17.8%UK£9.93UK£4.98n/a17
Feb ’25UK£4.66
UK£6.07
+30.4%
17.9%UK£9.96UK£5.00n/a18
Jan ’25UK£4.66
UK£6.07
+30.3%
18.5%UK£9.51UK£4.93n/a18
Dec ’24UK£4.78
UK£6.06
+26.7%
18.7%UK£9.54UK£5.03n/a18
Nov ’24UK£4.94
UK£6.19
+25.2%
19.1%UK£9.98UK£4.92n/a18
Oct ’24UK£5.31
UK£6.19
+16.5%
18.7%UK£10.44UK£5.02n/a18
Sep ’24UK£5.01
UK£6.03
+20.4%
18.7%UK£10.12UK£4.94n/a18
Aug ’24UK£4.82
UK£5.95
+23.6%
17.9%UK£9.97UK£4.94n/a19
Jul ’24UK£4.58
UK£6.07
+32.4%
16.6%UK£9.81UK£5.21n/a19
Jun ’24UK£4.62
UK£6.12
+32.6%
16.1%UK£9.94UK£5.28n/a21
May ’24UK£5.34
UK£6.17
+15.5%
16.0%UK£9.98UK£5.38n/a21
Apr ’24UK£5.11
UK£6.11
+19.6%
16.2%UK£9.78UK£5.24UK£4.9621
Mar ’24UK£5.50
UK£6.19
+12.5%
16.8%UK£10.03UK£5.19UK£4.7221
Feb ’24UK£4.92
UK£5.59
+13.6%
10.5%UK£6.81UK£4.90UK£4.6622
Jan ’24UK£4.75
UK£5.60
+18.0%
9.9%UK£6.83UK£4.88UK£4.6622
Dec ’23UK£4.89
UK£5.41
+10.6%
10.2%UK£6.72UK£4.58UK£4.7822
Nov ’23UK£4.86
UK£5.46
+12.1%
12.1%UK£6.98UK£4.33UK£4.9422
Oct ’23UK£4.33
UK£5.71
+31.8%
14.3%UK£7.59UK£4.35UK£5.3122
Sep ’23UK£4.41
UK£5.37
+21.7%
13.6%UK£7.16UK£4.21UK£5.0122
Aug ’23UK£3.92
UK£4.91
+25.2%
13.7%UK£6.80UK£3.89UK£4.8222
Jul ’23UK£3.85
UK£5.06
+31.7%
14.3%UK£7.24UK£3.88UK£4.5822
Jun ’23UK£4.31
UK£4.86
+12.6%
15.1%UK£6.92UK£3.71UK£4.6221
May ’23UK£3.92
UK£4.90
+25.1%
15.6%UK£7.27UK£3.92UK£5.3421
Apr ’23UK£3.79
UK£4.70
+24.0%
17.1%UK£7.23UK£3.76UK£5.1121

Analyst Forecast: Target price is less than 20% higher than the current share price.


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