Saudi Arabian Oil Company

SASE:2222 Stock Report

Market Cap: ر.س7.1t

Saudi Arabian Oil Valuation

Is 2222 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 2222 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2222 (SAR29.25) is trading above our estimate of fair value (SAR15.52)

Significantly Below Fair Value: 2222 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2222?

Other financial metrics that can be useful for relative valuation.

2222 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/Revenue4x
Enterprise Value/EBITDA7.8x
PEG Ratio29.9x

Price to Earnings Ratio vs Peers

How does 2222's PE Ratio compare to its peers?

The above table shows the PE ratio for 2222 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.3x
XOM Exxon Mobil
13.8x3.2%US$447.2b
CVX Chevron
14.4x2.4%US$290.7b
SHEL Shell
12.6x5.5%UK£177.7b
857 PetroChina
8.4x-5.4%HK$2.0t
2222 Saudi Arabian Oil
16.1x0.5%ر.س7.1t

Price-To-Earnings vs Peers: 2222 is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does 2222's PE Ratio compare vs other companies in the Asian Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2222 is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the Asian Oil and Gas industry average (10.5x).


Price to Earnings Ratio vs Fair Ratio

What is 2222'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.

2222 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.1x
Fair PE Ratio38.9x

Price-To-Earnings vs Fair Ratio: 2222 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (38.9x).


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 2222 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentر.س29.25
ر.س33.50
+14.5%
6.6%ر.س38.00ر.س30.00n/a15
May ’25ر.س30.05
ر.س33.59
+11.8%
6.9%ر.س38.00ر.س30.00n/a15
Apr ’25ر.س30.75
ر.س33.76
+9.8%
6.5%ر.س38.00ر.س31.00n/a15
Mar ’25ر.س31.70
ر.س33.79
+6.6%
6.4%ر.س38.00ر.س31.00n/a14
Feb ’25ر.س31.00
ر.س33.86
+9.2%
6.5%ر.س38.00ر.س31.00n/a14
Jan ’25ر.س33.05
ر.س34.32
+3.9%
7.2%ر.س38.00ر.س30.00n/a14
Dec ’24ر.س33.20
ر.س34.29
+3.3%
7.4%ر.س38.00ر.س30.00n/a14
Nov ’24ر.س33.15
ر.س34.44
+3.9%
8.4%ر.س39.50ر.س30.00n/a14
Oct ’24ر.س34.70
ر.س34.30
-1.2%
8.0%ر.س39.50ر.س30.00n/a14
Sep ’24ر.س34.90
ر.س34.18
-2.1%
7.9%ر.س39.50ر.س30.00n/a15
Aug ’24ر.س32.25
ر.س33.87
+5.0%
7.0%ر.س39.50ر.س30.00n/a16
Jul ’24n/a
ر.س34.51
0%
6.7%ر.س39.50ر.س30.00n/a16
Jun ’24ر.س31.65
ر.س34.60
+9.3%
6.9%ر.س39.50ر.س30.00n/a15
May ’24ر.س32.77
ر.س33.66
+2.7%
8.7%ر.س40.00ر.س27.27ر.س30.0516
Apr ’24ر.س29.36
ر.س34.29
+16.8%
9.7%ر.س41.82ر.س27.27ر.س30.7517
Mar ’24ر.س28.68
ر.س35.23
+22.8%
9.4%ر.س41.82ر.س27.27ر.س31.7017
Feb ’24ر.س29.91
ر.س35.61
+19.0%
10.0%ر.س41.82ر.س27.27ر.س31.0017
Jan ’24ر.س29.45
ر.س36.06
+22.4%
11.0%ر.س45.45ر.س27.27ر.س33.0517
Dec ’23ر.س30.09
ر.س36.38
+20.9%
11.6%ر.س45.45ر.س27.27ر.س33.2017
Nov ’23ر.س31.68
ر.س36.56
+15.4%
11.5%ر.س45.45ر.س27.27ر.س33.1517
Oct ’23ر.س32.59
ر.س36.76
+12.8%
10.8%ر.س45.45ر.س27.27ر.س34.7016
Sep ’23ر.س33.73
ر.س36.80
+9.1%
10.8%ر.س45.45ر.س27.27ر.س34.9016
Aug ’23ر.س36.41
ر.س36.10
-0.8%
12.4%ر.س45.45ر.س24.79ر.س32.2516
Jul ’23ر.س35.27
ر.س36.06
+2.2%
12.9%ر.س45.45ر.س24.79n/a16
Jun ’23ر.س37.32
ر.س35.75
-4.2%
13.1%ر.س45.45ر.س24.79ر.س31.6517
May ’23ر.س37.11
ر.س34.16
-7.9%
12.3%ر.س41.32ر.س24.79ر.س32.7717

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


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