Lanka IOC Valuation

Q: What is the Fair Price of LIOC.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LIOC.N0000 (LKR110.25) is trading below our estimate of [[fair value]] (LKR117.33)

Is LIOC.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 LIOC.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LIOC.N0000 (LKR110.25) is trading below our estimate of fair value (LKR117.33)

Significantly Below Fair Value: LIOC.N0000 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 LIOC.N0000?

Key metric: As LIOC.N0000 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LIOC.N0000. This is calculated by dividing LIOC.N0000's market cap by their current earnings.
What is LIOC.N0000's PE Ratio?
PE Ratio	4.6x
Earnings	LK₨12.74b
Market Cap	LK₨58.70b

LIOC.N0000 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/Revenue	0.05x
Enterprise Value/EBITDA	1.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does LIOC.N0000's PE Ratio compare to its peers?

The above table shows the PE ratio for LIOC.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	8.6x
APL Attock Petroleum	5.1x	-5.4%	PK₨55.3b
ATRL Attock Refinery	3.2x	n/a	PK₨53.3b
SHEL.N0000 Vivo Energy Mauritius	18.5x	n/a	MU₨10.4b
TOTAL TotalEnergies Marketing Nigeria	7.8x	56.6%	₦228.8b
LIOC.N0000 Lanka IOC	4.6x	n/a	LK₨58.7b

Price-To-Earnings vs Peers: LIOC.N0000 is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does LIOC.N0000's PE Ratio compare vs other companies in the Asian Oil and Gas Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LIOC.N0000 is good value based on its Price-To-Earnings Ratio (4.6x) compared to the Asian Oil and Gas industry average (10.5x).

Price to Earnings Ratio vs Fair Ratio

What is LIOC.N0000'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.

LIOC.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LIOC.N0000's Price-To-Earnings Fair Ratio for valuation analysis.

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 LIOC.N0000 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	LK₨110.25	LK₨156.20 +41.7%	2.0%	LK₨159.40	LK₨153.00	n/a	2
Nov ’25	LK₨115.50	LK₨156.20 +35.2%	2.0%	LK₨159.40	LK₨153.00	n/a	2
Oct ’25	LK₨114.75	LK₨156.20 +36.1%	2.0%	LK₨159.40	LK₨153.00	n/a	2
Sep ’25	LK₨106.00	LK₨156.20 +47.4%	2.0%	LK₨159.40	LK₨153.00	n/a	2
Aug ’25	LK₨117.50	LK₨156.20 +32.9%	2.0%	LK₨159.40	LK₨153.00	n/a	2
Jul ’25	LK₨126.00	LK₨149.30 +18.5%	2.5%	LK₨153.00	LK₨145.60	n/a	2
Jun ’25	LK₨127.00	LK₨149.30 +17.6%	2.5%	LK₨153.00	LK₨145.60	n/a	2
May ’25	LK₨132.75	LK₨149.30 +12.5%	2.5%	LK₨153.00	LK₨145.60	n/a	2
Apr ’25	LK₨117.00	LK₨149.30 +27.6%	2.5%	LK₨153.00	LK₨145.60	n/a	2
Mar ’25	LK₨108.25	LK₨149.30 +37.9%	2.5%	LK₨153.00	LK₨145.60	n/a	2
Oct ’24	LK₨116.25	LK₨195.40 +68.1%	27.9%	LK₨250.00	LK₨140.80	LK₨114.75	2
Sep ’24	LK₨123.75	LK₨195.40 +57.9%	27.9%	LK₨250.00	LK₨140.80	LK₨106.00	2
Aug ’24	LK₨131.00	LK₨195.40 +49.2%	27.9%	LK₨250.00	LK₨140.80	LK₨117.50	2
Jul ’24	LK₨130.00	LK₨226.13 +73.9%	27.5%	LK₨287.60	LK₨140.80	LK₨126.00	3
Jun ’24	LK₨136.75	LK₨226.13 +65.4%	27.5%	LK₨287.60	LK₨140.80	LK₨127.00	3
May ’24	LK₨164.75	LK₨239.77 +45.5%	18.3%	LK₨287.60	LK₨181.70	LK₨132.75	3
Apr ’24	LK₨171.50	LK₨239.77 +39.8%	18.3%	LK₨287.60	LK₨181.70	LK₨117.00	3
Mar ’24	LK₨199.00	LK₨234.65 +17.9%	22.6%	LK₨287.60	LK₨181.70	LK₨108.25	2
Feb ’24	LK₨203.25	LK₨234.65 +15.4%	22.6%	LK₨287.60	LK₨181.70	LK₨102.00	2
Jan ’24	LK₨202.75	LK₨234.65 +15.7%	22.6%	LK₨287.60	LK₨181.70	LK₨102.00	2
Dec ’23	LK₨194.75	LK₨238.70 +22.6%	23.9%	LK₨295.70	LK₨181.70	LK₨103.00	2
Nov ’23	LK₨175.25	LK₨190.90 +8.9%	54.9%	LK₨295.70	LK₨86.10	LK₨113.75	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.