CNOOC Limited

SZSC:883 Stock Report

Market Cap: HK$831.7b

CNOOC Valuation

Is 883 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 883 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 883 (HK$16.82) is trading below our estimate of fair value (HK$50.17)

Significantly Below Fair Value: 883 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 883?

Key metric: As 883 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 883. This is calculated by dividing 883's market cap by their current earnings.
What is 883's PE Ratio?
PE Ratio5.2x
EarningsCN¥142.86b
Market CapCN¥772.19b

Price to Earnings Ratio vs Peers

How does 883's PE Ratio compare to its peers?

The above table shows the PE ratio for 883 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.2x
386 China Petroleum & Chemical
9.6x9.5%HK$762.7b
1088 China Shenhua Energy
10.6x-0.7%HK$824.4b
857 PetroChina
5.7x-3.8%HK$1.5t
1898 China Coal Energy
6.8x1.9%HK$163.6b
883 CNOOC
5.2x-1.4%HK$831.7b

Price-To-Earnings vs Peers: 883 is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

How does 883's PE Ratio compare vs other companies in the HK Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
663 King Stone Energy Group
1.3xn/aUS$15.51m
276 Mongolia Energy
0.07xn/aUS$15.22m
No more companies available in this PE range
883 5.2xIndustry Avg. 9.6xNo. of Companies4PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 883 is good value based on its Price-To-Earnings Ratio (5.2x) compared to the Hong Kong Oil and Gas industry average (9.6x).

Price to Earnings Ratio vs Fair Ratio

What is 883'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.

883 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: 883 is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

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 883 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$16.82
HK$23.00
+36.8%
19.4%HK$31.62HK$8.78n/a17
Nov ’25HK$18.38
HK$23.21
+26.3%
19.4%HK$32.01HK$8.89n/a17
Oct ’25HK$19.42
HK$23.48
+20.9%
19.0%HK$31.74HK$8.96n/a17
Sep ’25HK$21.55
HK$23.57
+9.4%
20.0%HK$31.66HK$9.11n/a16
Aug ’25HK$20.90
HK$22.51
+7.7%
20.1%HK$30.90HK$8.89n/a16
Jul ’25HK$22.40
HK$22.03
-1.7%
18.9%HK$27.90HK$8.83n/a16
Jun ’25HK$20.90
HK$21.45
+2.6%
19.1%HK$27.99HK$8.86n/a16
May ’25HK$20.30
HK$21.30
+4.9%
19.1%HK$28.10HK$8.90n/a16
Apr ’25HK$18.12
HK$19.57
+8.0%
19.7%HK$27.64HK$8.89n/a15
Mar ’25HK$16.16
HK$16.76
+3.7%
15.4%HK$21.74HK$9.00n/a16
Feb ’25HK$14.32
HK$16.74
+16.9%
15.3%HK$21.85HK$9.04n/a16
Jan ’25HK$13.00
HK$16.24
+24.9%
17.1%HK$23.15HK$8.90n/a16
Dec ’24HK$12.82
HK$16.44
+28.3%
14.5%HK$23.12HK$11.60n/a16
Nov ’24HK$12.90
HK$16.22
+25.7%
14.2%HK$22.74HK$11.60HK$18.3816
Oct ’24HK$13.78
HK$15.53
+12.7%
12.4%HK$19.29HK$10.60HK$19.4216
Sep ’24HK$13.38
HK$15.36
+14.8%
12.6%HK$19.41HK$10.61HK$21.5517
Aug ’24HK$12.72
HK$15.23
+19.7%
13.1%HK$19.98HK$10.40HK$20.9017
Jul ’24HK$11.20
HK$15.01
+34.0%
13.0%HK$19.80HK$10.40HK$22.4017
Jun ’24HK$11.82
HK$15.10
+27.8%
14.4%HK$20.26HK$10.15HK$20.9018
May ’24HK$12.80
HK$15.37
+20.1%
15.3%HK$20.79HK$10.42HK$20.3017
Apr ’24HK$11.66
HK$14.77
+26.7%
16.3%HK$18.71HK$8.52HK$18.1217
Mar ’24HK$11.26
HK$14.64
+30.0%
20.2%HK$21.85HK$8.40HK$16.1617
Feb ’24HK$11.60
HK$14.79
+27.5%
20.1%HK$22.21HK$8.54HK$14.3217
Jan ’24HK$9.98
HK$14.51
+45.4%
17.9%HK$19.69HK$8.33HK$13.0017
Dec ’23HK$10.10
HK$14.11
+39.7%
17.7%HK$19.13HK$8.10HK$12.8217
Nov ’23HK$9.67
HK$13.95
+44.2%
17.5%HK$18.87HK$8.05HK$12.9017

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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