Shell plc

NYSE:SHEL Stock Report

Market Cap: US$199.1b

Shell Valuation

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

Below Fair Value: SHEL ($64.79) is trading below our estimate of fair value ($72.56)

Significantly Below Fair Value: SHEL 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 SHEL?

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

The above table shows the Price to Earnings ratio for SHEL. This is calculated by dividing SHEL's market cap by their current earnings.
What is SHEL's PE Ratio?
PE Ratio12.7x
EarningsUS$15.64b
Market CapUS$199.13b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
CVX Chevron
17.5x7.0%US$288.2b
XOM Exxon Mobil
15.4x4.9%US$527.3b
OXY Occidental Petroleum
13.3x8.7%US$47.3b
COP ConocoPhillips
13.9x0.6%US$137.2b
SHEL Shell
12.7x5.0%US$158.7b

Price-To-Earnings vs Peers: SHEL is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does SHEL'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
SHEL 12.7xIndustry Avg. 11.6xNo. of Companies20PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHEL is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the US Oil and Gas industry average (11.6x).

Price to Earnings Ratio vs Fair Ratio

What is SHEL'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.

SHEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: SHEL is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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