We’ve recently updated our valuation analysis.

Frontline Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 FRO?

Other financial metrics that can be useful for relative valuation.

FRO 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/Revenue5.5x
Enterprise Value/EBITDA22.4x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.7x
GLNG Golar LNG
3.2x-56.9%US$2.7b
STNG Scorpio Tankers
8.2x-12.6%US$2.7b
HEP Holly Energy Partners
12x11.5%US$2.3b
INSW International Seaways
15.5x23.4%US$2.1b
FRO Frontline
44.4x25.2%US$2.9b

Price-To-Earnings vs Peers: FRO is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the peer average (9.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-12.6%
n/an/an/a

Price-To-Earnings vs Industry: FRO is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the US Oil and Gas industry average (7.5x)


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.

FRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.4x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: FRO is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).


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 ($12.94) is trading below our estimate of fair value ($21.7)

Significantly Below Fair Value: FRO 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 FRO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.94
US$15.13
+16.9%
11.1%US$17.00US$12.50n/a4
Nov ’23US$13.22
US$15.13
+14.4%
11.1%US$17.00US$12.50n/a4
Oct ’23US$10.93
US$13.63
+24.7%
11.4%US$16.00US$12.00n/a4
Sep ’23US$11.66
US$11.13
-4.6%
23.4%US$14.00US$7.00n/a4
Aug ’23US$10.11
US$10.38
+2.6%
23.9%US$13.00US$7.00n/a4
Jul ’23US$9.02
US$10.50
+16.4%
23.7%US$12.50US$7.00n/a3
Jun ’23US$10.12
US$10.10
-0.2%
19.9%US$12.50US$7.00n/a5
May ’23US$8.33
US$9.00
+8.0%
15.7%US$11.00US$7.00n/a4
Apr ’23US$9.18
US$8.75
-4.7%
16.9%US$11.00US$7.00n/a4
Mar ’23US$9.53
US$8.75
-8.2%
16.9%US$11.00US$7.00n/a4
Feb ’23US$6.80
US$8.64
+27.1%
14.4%US$10.20US$7.00n/a5
Jan ’23US$7.07
US$8.64
+22.2%
14.4%US$10.20US$7.00n/a5
Dec ’22US$6.41
US$8.64
+34.8%
14.4%US$10.20US$7.00n/a5
Nov ’22US$9.13
US$8.22
-10.0%
9.1%US$9.00US$7.00US$13.225
Oct ’22US$9.65
US$8.02
-16.9%
7.9%US$9.00US$7.00US$10.935
Sep ’22US$7.62
US$8.02
+5.2%
7.9%US$9.00US$7.00US$11.665
Aug ’22US$7.96
US$8.22
+3.3%
11.9%US$10.00US$7.00US$10.115
Jul ’22US$8.70
US$8.42
-3.2%
16.0%US$11.00US$7.00US$9.025
Jun ’22US$8.76
US$8.42
-3.9%
16.0%US$11.00US$7.00US$10.125
May ’22US$7.64
US$7.36
-3.7%
7.2%US$8.00US$6.80US$8.335
Apr ’22US$7.35
US$7.36
+0.1%
7.2%US$8.00US$6.80US$9.185
Mar ’22US$6.97
US$7.20
+3.3%
6.5%US$8.00US$6.80US$9.534
Feb ’22US$5.98
US$6.83
+14.1%
13.0%US$8.00US$5.50US$6.804
Jan ’22US$6.22
US$6.83
+9.7%
18.2%US$8.50US$5.00US$7.074
Dec ’21US$6.14
US$6.83
+11.2%
18.2%US$8.50US$5.00US$6.414
Nov ’21US$5.41
US$7.08
+30.8%
20.1%US$9.00US$5.00US$9.134

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


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