TORM plc

NasdaqGS:TRMD Stock Report

Market Cap: US$2.2b

TORM Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: TRMD ($23.43) is trading below our estimate of fair value ($57.18)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TRMD. This is calculated by dividing TRMD's market cap by their current earnings.
What is TRMD's PE Ratio?
PE Ratio3.1x
EarningsUS$719.37m
Market CapUS$2.22b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TRMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.3x
STNG Scorpio Tankers
3.6x-31.7%US$2.5b
INSW International Seaways
4x-13.2%US$2.0b
NFE New Fortress Energy
11.8x8.4%US$2.2b
CEQP Crestwood Equity Partners
21.8x20.8%US$3.0b
TRMD TORM
3.1x-29.4%US$15.8b

Price-To-Earnings vs Peers: TRMD is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (6.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
TRMD 3.1xIndustry Avg. 11.7xNo. of Companies16PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRMD is good value based on its Price-To-Earnings Ratio (3.1x) compared to the US Oil and Gas industry average (11.3x).

Price to Earnings Ratio vs Fair Ratio

What is TRMD'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.

TRMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio5.8x

Price-To-Earnings vs Fair Ratio: TRMD is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (5.8x).

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 TRMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$23.43
US$34.78
+48.4%
18.1%US$41.07US$28.49n/a2
Nov ’25US$25.75
US$35.87
+39.3%
13.2%US$42.32US$31.03n/a3
Oct ’25US$32.44
US$40.07
+23.5%
8.4%US$42.55US$35.34n/a3
Sep ’25US$36.09
US$42.90
+18.9%
2.4%US$44.30US$41.85n/a3
Aug ’25US$37.84
US$41.82
+10.5%
1.0%US$42.42US$41.38n/a3
Jul ’25US$38.26
US$41.59
+8.7%
0.4%US$41.71US$41.38n/a3
Jun ’25US$37.05
US$41.31
+11.5%
1.8%US$42.20US$40.35n/a3
May ’25US$33.82
US$40.50
+19.8%
2.0%US$41.57US$39.64n/a3
Apr ’25US$35.18
US$40.44
+14.9%
2.9%US$42.11US$39.57n/a3
Mar ’25US$33.80
US$38.95
+15.3%
2.1%US$40.04US$37.84n/a4
Feb ’25US$34.91
US$38.17
+9.3%
0.9%US$38.64US$37.92n/a3
Jan ’25US$30.41
US$37.95
+24.8%
1.5%US$38.64US$37.29n/a3
Dec ’24US$28.41
US$37.95
+33.6%
1.5%US$38.64US$37.29n/a3
Nov ’24US$31.28
US$36.01
+15.1%
4.0%US$37.58US$34.10US$25.753
Oct ’24US$27.52
US$35.14
+27.7%
1.8%US$35.75US$34.52US$32.442
Sep ’24US$25.84
US$35.18
+36.2%
1.1%US$35.75US$34.88US$36.093
Aug ’24US$24.75
US$37.60
+51.9%
5.0%US$40.25US$36.01US$37.843
Jul ’24US$24.16
US$37.87
+56.8%
3.8%US$39.89US$36.54US$38.263
Jun ’24US$25.22
US$37.91
+50.3%
3.7%US$39.89US$36.64US$37.053
May ’24US$29.64
US$39.70
+33.9%
4.1%US$41.00US$37.43US$33.823
Apr ’24US$31.13
US$37.99
+22.0%
10.2%US$43.00US$33.54US$35.183
Mar ’24US$36.22
US$33.83
-6.6%
0.7%US$33.99US$33.51US$33.803
Feb ’24US$26.32
US$34.00
+29.2%
0.04%US$34.03US$33.99US$34.913
Jan ’24US$29.17
US$33.74
+15.7%
1.1%US$33.99US$33.24US$30.413
Dec ’23US$28.67
US$33.36
+16.4%
2.7%US$33.99US$32.09US$28.413
Nov ’23US$27.43
US$31.93
+16.4%
3.8%US$33.65US$30.88US$31.283

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.

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