Oil and Natural Gas Corporation Limited

NSEI:ONGC Stock Report

Market Cap: ₹3.7t

Oil and Natural Gas Valuation

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

Below Fair Value: ONGC (₹295.6) is trading above our estimate of fair value (₹235.52)

Significantly Below Fair Value: ONGC is trading above our estimate of fair value.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ONGC 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/Revenue0.8x
Enterprise Value/EBITDA5.2x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ONGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.2x
COALINDIA Coal India
8x3.1%₹3.0t
IOC Indian Oil
7.8x-4.8%₹2.4t
BPCL Bharat Petroleum
7.9x-12.8%₹1.5t
HINDPETRO Hindustan Petroleum
9.1x1.7%₹896.6b
ONGC Oil and Natural Gas
8.4x7.2%₹3.7t

Price-To-Earnings vs Peers: ONGC is expensive based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.8%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.8%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ONGC is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Indian Oil and Gas industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is ONGC'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.

ONGC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio15.3x

Price-To-Earnings vs Fair Ratio: ONGC is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).

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 ONGC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹295.60
₹322.00
+8.9%
18.4%₹430.00₹175.00n/a30
Sep ’25₹330.75
₹317.65
-4.0%
20.4%₹430.00₹162.00n/a31
Aug ’25₹341.75
₹290.10
-15.1%
19.2%₹390.00₹162.00n/a30
Jul ’25₹272.95
₹286.23
+4.9%
18.5%₹390.00₹162.00n/a30
Jun ’25₹264.35
₹277.45
+5.0%
20.1%₹390.00₹162.00n/a31
May ’25₹282.85
₹263.63
-6.8%
21.8%₹390.00₹140.00n/a30
Apr ’25₹269.90
₹258.24
-4.3%
20.4%₹344.00₹140.00n/a29
Mar ’25₹270.55
₹253.83
-6.2%
20.7%₹326.00₹140.00n/a29
Feb ’25₹247.65
₹218.44
-11.8%
15.8%₹270.00₹140.00n/a27
Jan ’25₹205.35
₹209.43
+2.0%
15.2%₹256.00₹140.00n/a28
Dec ’24₹194.55
₹207.00
+6.4%
15.2%₹256.00₹140.00n/a29
Nov ’24₹186.70
₹196.29
+5.1%
15.1%₹256.00₹130.00n/a28
Oct ’24₹191.85
₹191.37
-0.3%
14.7%₹234.00₹130.00n/a27
Sep ’24₹181.75
₹190.44
+4.8%
14.7%₹234.00₹130.00₹330.7527
Aug ’24₹176.70
₹185.67
+5.1%
13.9%₹230.00₹130.00₹341.7527
Jul ’24₹160.30
₹186.08
+16.1%
14.5%₹230.00₹130.00₹272.9526
Jun ’24₹153.65
₹187.32
+21.9%
14.7%₹230.00₹130.00₹264.3525
May ’24₹158.95
₹182.76
+15.0%
14.8%₹230.00₹120.00₹282.8525
Apr ’24₹151.05
₹178.78
+18.4%
12.6%₹220.00₹120.00₹269.9024
Mar ’24₹154.80
₹179.79
+16.1%
13.5%₹221.00₹120.00₹270.5525
Feb ’24₹144.25
₹175.20
+21.5%
18.0%₹225.00₹105.00₹247.6525
Jan ’24₹146.75
₹174.52
+18.9%
17.3%₹225.00₹110.00₹205.3525
Dec ’23₹140.05
₹174.28
+24.4%
17.2%₹225.00₹110.00₹194.5525
Nov ’23₹135.15
₹171.96
+27.2%
17.9%₹240.00₹105.00₹186.7023
Oct ’23₹126.80
₹173.48
+36.8%
18.2%₹240.00₹100.00₹191.8523
Sep ’23₹134.70
₹173.48
+28.8%
18.2%₹240.00₹100.00₹181.7523

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

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