Harbour Energy plc

LSE:HBR Stock Report

Market Cap: UK£3.7b

Harbour Energy Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: HBR (£2.68) is trading below our estimate of fair value (£4.66)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HBR. This is calculated by dividing HBR's market cap by their current earnings.
What is HBR's PE Ratio?
PE Ratio50.2x
EarningsUS$97.00m
Market CapUS$4.71b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.1x
ITH Ithaca Energy
14x-9.3%UK£1.6b
SEPL Seplat Energy
19.7x13.4%UK£1.3b
ENOG Energean
8.9x7.0%UK£1.9b
DEC Diversified Energy
5.8x1.1%UK£642.7m
HBR Harbour Energy
50.2x14.4%UK£3.7b

Price-To-Earnings vs Peers: HBR is expensive based on its Price-To-Earnings Ratio (50.2x) compared to the peer average (12.1x).

Price to Earnings Ratio vs Industry

How does HBR'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$20.12m
No more companies available in this PE range
HBR 50.2xIndustry Avg. 8.9xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HBR is expensive based on its Price-To-Earnings Ratio (50.2x) compared to the UK Oil and Gas industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is HBR'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.

HBR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50.2x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: HBR is expensive based on its Price-To-Earnings Ratio (50.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).

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 HBR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.68
UK£3.70
+38.1%
17.3%UK£4.83UK£2.55n/a8
Nov ’25UK£2.76
UK£3.72
+34.8%
17.1%UK£4.84UK£2.57n/a8
Oct ’25UK£2.71
UK£3.62
+33.6%
16.1%UK£4.67UK£2.62n/a8
Sep ’25UK£2.99
UK£3.85
+28.5%
16.1%UK£4.74UK£2.69n/a7
Aug ’25UK£3.04
UK£3.81
+25.2%
16.1%UK£4.71UK£2.69n/a7
Jul ’25UK£3.11
UK£3.83
+23.3%
16.5%UK£4.80UK£2.75n/a7
Jun ’25UK£3.30
UK£3.74
+13.2%
20.5%UK£5.35UK£2.76n/a8
May ’25UK£2.88
UK£3.85
+33.7%
21.0%UK£5.59UK£2.82n/a8
Apr ’25UK£2.76
UK£3.83
+38.8%
22.3%UK£5.45UK£2.75n/a8
Mar ’25UK£2.64
UK£3.79
+43.3%
24.1%UK£5.44UK£2.80n/a8
Feb ’25UK£2.72
UK£3.73
+37.0%
25.6%UK£5.41UK£2.48n/a8
Jan ’25UK£3.09
UK£3.74
+21.2%
26.0%UK£5.71UK£2.49n/a8
Dec ’24UK£2.27
UK£3.56
+56.5%
22.3%UK£4.79UK£2.48n/a9
Nov ’24UK£2.45
UK£3.71
+51.3%
22.4%UK£5.01UK£2.59UK£2.769
Oct ’24UK£2.58
UK£3.73
+44.8%
22.9%UK£5.01UK£2.59UK£2.719
Sep ’24UK£2.54
UK£3.48
+37.1%
23.6%UK£4.80UK£2.12UK£2.9911
Aug ’24UK£2.60
UK£3.52
+35.3%
25.6%UK£4.76UK£2.10UK£3.0411
Jul ’24UK£2.29
UK£3.83
+67.6%
19.4%UK£4.81UK£2.84UK£3.1110
Jun ’24UK£2.33
UK£4.29
+84.1%
26.4%UK£6.30UK£2.88UK£3.3011
May ’24UK£2.47
UK£4.26
+72.3%
26.2%UK£6.28UK£2.89UK£2.8811
Apr ’24UK£2.74
UK£4.47
+62.8%
24.5%UK£6.40UK£3.06UK£2.7611
Mar ’24UK£2.95
UK£4.71
+59.6%
24.0%UK£6.51UK£3.11UK£2.6411
Feb ’24UK£3.11
UK£4.63
+48.7%
24.5%UK£6.64UK£3.08UK£2.7211
Jan ’24UK£3.04
UK£4.88
+60.5%
23.2%UK£6.44UK£3.13UK£3.0911
Dec ’23UK£3.18
UK£5.04
+58.1%
22.9%UK£6.57UK£3.19UK£2.2711
Nov ’23UK£3.82
UK£6.47
+69.3%
14.7%UK£7.97UK£4.95UK£2.4511

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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