Shell Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: SHEL (£27.72) is trading below our estimate of fair value (£33.49)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SHEL 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/Revenue0.9x
Enterprise Value/EBITDA6.3x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.2x
XOM Exxon Mobil
13.6x3.2%US$447.2b
CVX Chevron
14.3x2.4%US$290.7b
2222 Saudi Arabian Oil
16.5x0.5%ر.س7.2t
PETR4 Petróleo Brasileiro - Petrobras
4.3x-1.6%R$485.3b
SHEL Shell
12.5x5.5%UK£177.1b

Price-To-Earnings vs Peers: SHEL is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SHEL is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the UK Oil and Gas industry average (10.8x).


Price to Earnings Ratio vs Fair Ratio

What is SHEL'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.

SHEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: SHEL is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).


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 SHEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£27.72
UK£32.07
+15.7%
8.1%UK£37.37UK£28.65n/a15
May ’25UK£28.19
UK£31.36
+11.3%
9.0%UK£38.38UK£27.34n/a15
Apr ’25UK£26.25
UK£30.55
+16.4%
9.7%UK£38.48UK£25.94n/a15
Mar ’25UK£24.95
UK£30.08
+20.6%
10.4%UK£38.14UK£25.71n/a15
Feb ’25UK£25.06
UK£30.24
+20.7%
10.0%UK£37.88UK£25.76n/a15
Jan ’25UK£25.72
UK£30.09
+17.0%
10.5%UK£37.07UK£24.62n/a15
Dec ’24UK£25.68
UK£29.82
+16.1%
10.0%UK£37.06UK£24.61n/a15
Nov ’24UK£26.57
UK£30.07
+13.2%
10.7%UK£38.28UK£25.27n/a15
Oct ’24UK£26.06
UK£29.98
+15.0%
9.2%UK£36.78UK£25.35n/a16
Sep ’24UK£24.45
UK£28.89
+18.2%
9.3%UK£35.54UK£24.49n/a16
Aug ’24UK£23.52
UK£28.58
+21.5%
10.5%UK£35.07UK£23.77n/a18
Jul ’24UK£23.43
UK£28.86
+23.2%
9.5%UK£35.41UK£24.19n/a19
Jun ’24UK£22.48
UK£29.07
+29.3%
9.3%UK£33.66UK£23.28n/a20
May ’24UK£24.52
UK£28.72
+17.1%
8.4%UK£32.92UK£24.01UK£28.1921
Apr ’24UK£23.09
UK£28.72
+24.4%
9.9%UK£34.60UK£22.89UK£26.2521
Mar ’24UK£25.64
UK£29.53
+15.2%
10.0%UK£36.00UK£23.50UK£24.9520
Feb ’24UK£23.67
UK£28.78
+21.6%
10.2%UK£34.92UK£22.79UK£25.0621
Jan ’24UK£23.26
UK£29.41
+26.4%
9.7%UK£36.09UK£23.44UK£25.7220
Dec ’23UK£23.82
UK£28.32
+18.9%
8.6%UK£32.78UK£23.07UK£25.6820
Nov ’23UK£24.54
UK£29.78
+21.3%
8.9%UK£35.40UK£24.63UK£26.5720
Oct ’23UK£22.47
UK£31.51
+40.3%
10.7%UK£37.38UK£22.86UK£26.0620
Sep ’23UK£22.73
UK£29.37
+29.2%
9.7%UK£33.74UK£21.19UK£24.4520
Aug ’23UK£21.36
UK£27.35
+28.1%
10.5%UK£31.66UK£19.95UK£23.5220
Jul ’23UK£21.21
UK£28.09
+32.4%
8.7%UK£31.16UK£21.22UK£23.4320
Jun ’23UK£23.61
UK£26.96
+14.2%
9.5%UK£31.44UK£20.56UK£22.4819
May ’23UK£21.73
UK£26.58
+22.3%
11.1%UK£31.16UK£20.42UK£24.5219

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


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