Frontline Valuation
Is FRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 FRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FRO (NOK275.9) is trading below our estimate of fair value (NOK358.23)
Significantly Below Fair Value: FRO is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FRO?
Other financial metrics that can be useful for relative valuation.
| What is FRO's n/a Ratio? | |
|---|---|
| n/a | 0x |
| n/a | n/a |
| Market Cap | US$5.72b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 5x |
| Enterprise Value/EBITDA | 10x |
| PEG Ratio | 2.8x |
Price to Earnings Ratio vs Peers
How does FRO's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 5.7x | ||
HAFNI Hafnia | 5.5x | -15.3% | NOK 44.4b |
BWLPG BWG | 5x | -24.3% | NOK 25.9b |
OET Okeanis Eco Tankers | 7.6x | 2.1% | NOK 11.0b |
AGAS Avance Gas Holding | 4.5x | -32.3% | NOK 13.2b |
FRO Frontline | 9.1x | 3.2% | NOK 5.7b |
Price-To-Earnings vs Peers: FRO is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (5.7x).
Price to Earnings Ratio vs Industry
How does FRO's PE Ratio compare vs other companies in the European Oil and Gas Industry?
Price-To-Earnings vs Industry: FRO is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the European Oil and Gas industry average (7.8x).
Price to Earnings Ratio vs Fair Ratio
What is FRO'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 9.1x |
| Fair PE Ratio | 11.1x |
Price-To-Earnings vs Fair Ratio: FRO is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | NOK 275.90 | NOK 339.68 +23.1% | 3.5% | NOK 351.46 | NOK 319.51 | n/a | 5 |
| Jun ’25 | NOK 300.80 | NOK 334.71 +11.3% | 3.5% | NOK 346.32 | NOK 314.84 | n/a | 5 |
| May ’25 | NOK 264.90 | NOK 327.67 +23.7% | 8.4% | NOK 366.56 | NOK 288.81 | n/a | 7 |
| Apr ’25 | NOK 246.40 | NOK 298.36 +21.1% | 10.6% | NOK 341.36 | NOK 237.88 | n/a | 7 |
| Mar ’25 | NOK 241.50 | NOK 283.34 +17.3% | 12.3% | NOK 336.65 | NOK 234.61 | n/a | 7 |
| Feb ’25 | NOK 242.10 | NOK 280.41 +15.8% | 11.9% | NOK 336.52 | NOK 231.36 | n/a | 7 |
| Jan ’25 | NOK 202.90 | NOK 256.13 +26.2% | 18.6% | NOK 341.40 | NOK 181.37 | n/a | 7 |
| Dec ’24 | NOK 218.80 | NOK 251.11 +14.8% | 19.4% | NOK 341.40 | NOK 181.37 | n/a | 7 |
| Nov ’24 | NOK 253.85 | NOK 238.09 -6.2% | 9.9% | NOK 268.08 | NOK 189.89 | n/a | 7 |
| Oct ’24 | NOK 197.00 | NOK 217.19 +10.3% | 12.0% | NOK 250.88 | NOK 182.26 | n/a | 7 |
| Sep ’24 | NOK 186.00 | NOK 217.70 +17.0% | 11.8% | NOK 250.05 | NOK 181.66 | n/a | 7 |
| Aug ’24 | NOK 171.50 | NOK 209.24 +22.0% | 12.3% | NOK 237.59 | NOK 183.59 | n/a | 4 |
| Jul ’24 | NOK 154.48 | NOK 209.24 +35.4% | 12.3% | NOK 237.59 | NOK 183.59 | n/a | 4 |
| Jun ’24 | NOK 170.60 | NOK 195.70 +14.7% | 19.6% | NOK 244.28 | NOK 138.80 | NOK 300.80 | 4 |
| May ’24 | NOK 165.44 | NOK 199.43 +20.5% | 21.4% | NOK 239.84 | NOK 130.35 | NOK 264.90 | 4 |
| Apr ’24 | NOK 171.22 | NOK 199.43 +16.5% | 21.4% | NOK 239.84 | NOK 130.35 | NOK 246.40 | 4 |
| Mar ’24 | NOK 197.84 | NOK 192.10 -2.9% | 23.0% | NOK 238.82 | NOK 129.80 | NOK 241.50 | 4 |
| Feb ’24 | NOK 144.44 | NOK 168.05 +16.3% | 19.8% | NOK 217.48 | NOK 123.57 | NOK 242.10 | 4 |
| Jan ’24 | NOK 117.60 | NOK 155.26 +32.0% | 15.2% | NOK 185.82 | NOK 122.25 | NOK 202.90 | 4 |
| Dec ’23 | NOK 132.50 | NOK 153.99 +16.2% | 12.0% | NOK 170.26 | NOK 125.19 | NOK 218.80 | 4 |
| Nov ’23 | NOK 137.90 | NOK 155.05 +12.4% | 11.1% | NOK 174.28 | NOK 128.14 | NOK 253.85 | 4 |
| Oct ’23 | NOK 120.70 | NOK 136.65 +13.2% | 11.4% | NOK 160.48 | NOK 120.36 | NOK 197.00 | 4 |
| Sep ’23 | NOK 118.20 | NOK 108.57 -8.1% | 23.4% | NOK 136.63 | NOK 68.32 | NOK 186.00 | 4 |
| Aug ’23 | NOK 96.45 | NOK 101.96 +5.7% | 23.9% | NOK 127.76 | NOK 68.79 | NOK 171.50 | 4 |
| Jul ’23 | NOK 85.75 | NOK 103.28 +20.4% | 23.7% | NOK 122.95 | NOK 68.85 | NOK 154.48 | 3 |
| Jun ’23 | NOK 92.20 | NOK 96.76 +4.9% | 19.9% | NOK 119.76 | NOK 67.06 | NOK 170.60 | 5 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.