Oil and Natural Gas Corporation Limited

NSEI:ONGC Stock Report

Mkt Cap: ₹1.8t

We’ve recently updated our valuation analysis.

Oil and Natural Gas Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue0.5x
Enterprise Value/EBITDA3.8x
PEG Ratio28.8x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.8x
COALINDIA Coal India
4.6x-16.6%₹1.4t
IOC Indian Oil
17.9x51.0%₹1.1t
PETRONET Petronet LNG
9.3x4.8%₹324.6b
RELIANCE Reliance Industries
23.4x14.2%₹14.9t
ONGC Oil and Natural Gas
4.3x0.2%₹1.8t

Price-To-Earnings vs Peers: ONGC is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (13.8x).


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/a16.9%
n/an/an/a

Price-To-Earnings vs Industry: ONGC is good value based on its Price-To-Earnings Ratio (4.3x) compared to the Indian Oil and Gas industry average (14.9x)


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 Ratio4.3x
Fair PE Ratio7.5x

Price-To-Earnings vs Fair Ratio: ONGC is good value based on its Price-To-Earnings Ratio (4.3x) compared to the estimated Fair Price-To-Earnings Ratio (7.5x).


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 (₹144.25) is trading below our estimate of fair value (₹633.35)

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


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₹144.25
₹175.20
+21.5%
18.0%₹225.00₹105.00n/a25
Jan ’24₹146.75
₹174.52
+18.9%
17.3%₹225.00₹110.00n/a25
Dec ’23₹140.05
₹174.28
+24.4%
17.2%₹225.00₹110.00n/a25
Nov ’23₹135.15
₹171.96
+27.2%
17.9%₹240.00₹105.00n/a23
Oct ’23₹126.80
₹173.48
+36.8%
18.2%₹240.00₹100.00n/a23
Sep ’23₹134.70
₹173.48
+28.8%
18.2%₹240.00₹100.00n/a23
Aug ’23₹138.40
₹180.23
+30.2%
15.9%₹240.00₹120.00n/a22
Jul ’23₹131.05
₹209.67
+60.0%
20.5%₹315.00₹140.00n/a21
Jun ’23₹149.75
₹215.62
+44.0%
17.3%₹315.00₹140.00n/a21
May ’23₹160.45
₹222.57
+38.7%
16.8%₹300.00₹155.00n/a21
Apr ’23₹167.95
₹218.10
+29.9%
17.1%₹300.00₹155.00n/a21
Mar ’23₹160.65
₹207.33
+29.1%
18.1%₹300.00₹140.00n/a24
Feb ’23₹170.95
₹189.32
+10.7%
21.3%₹263.00₹115.00₹144.2525
Jan ’23₹142.40
₹185.68
+30.4%
19.8%₹255.00₹115.00₹146.7525
Dec ’22₹142.25
₹185.92
+30.7%
20.2%₹255.00₹115.00₹140.0524
Nov ’22₹153.15
₹170.08
+11.1%
21.2%₹235.00₹106.00₹135.1524
Oct ’22₹146.25
₹155.62
+6.4%
21.1%₹229.00₹106.00₹126.8026
Sep ’22₹119.70
₹151.78
+26.8%
23.0%₹245.00₹106.00₹134.7027
Aug ’22₹115.30
₹151.08
+31.0%
21.2%₹220.00₹106.00₹138.4025
Jul ’22₹118.85
₹148.21
+24.7%
20.4%₹220.00₹106.00₹131.0524
Jun ’22₹117.60
₹129.33
+10.0%
20.5%₹190.00₹90.00₹149.7524
May ’22₹108.15
₹126.36
+16.8%
21.6%₹190.00₹80.00₹160.4525
Apr ’22₹104.35
₹126.12
+20.9%
21.0%₹190.00₹80.00₹167.9526
Mar ’22₹117.05
₹116.92
-0.1%
19.3%₹165.00₹65.00₹160.6526
Feb ’22₹90.85
₹102.96
+13.3%
22.6%₹150.00₹60.00₹170.9527

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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