BP PE Ratio & Valuation,Is BP Overvalued

BP Relative Valuation

BP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BP is overvalued; if below, it's undervalued.

Historical Valuation

BP PLC (BP) is now in the Fair zone, suggesting that its current forward PE ratio of 11.72 is considered Fairly compared with the five-year average of 7.13. The fair price of BP PLC (BP) is between 20.46 to 35.93 according to relative valuation methord.

Relative Value

Fair Zone

20.46-35.93

Current Price：35.25

Fair

11.23

4.19

EV/EBITDA

BP PLC. (BP) has a current EV/EBITDA of 4.19. The 5-year average EV/EBITDA is 3.55. The thresholds are as follows: Strongly Undervalued below 2.39, Undervalued between 2.39 and 2.97, Fairly Valued between 4.13 and 2.97, Overvalued between 4.13 and 4.70, and Strongly Overvalued above 4.70. The current Forward EV/EBITDA of 4.19 falls within the Overvalued range.

7.94

EV/EBIT

BP PLC. (BP) has a current EV/EBIT of 7.94. The 5-year average EV/EBIT is 5.88. The thresholds are as follows: Strongly Undervalued below 2.73, Undervalued between 2.73 and 4.30, Fairly Valued between 7.45 and 4.30, Overvalued between 7.45 and 9.03, and Strongly Overvalued above 9.03. The current Forward EV/EBIT of 7.94 falls within the Overvalued range.

0.50

BP PLC. (BP) has a current PS of 0.50. The 5-year average PS is 0.47. The thresholds are as follows: Strongly Undervalued below 0.37, Undervalued between 0.37 and 0.42, Fairly Valued between 0.52 and 0.42, Overvalued between 0.52 and 0.56, and Strongly Overvalued above 0.56. The current Forward PS of 0.50 falls within the Historic Trend Line -Fairly Valued range.

3.13

P/OCF

BP PLC. (BP) has a current P/OCF of 3.13. The 5-year average P/OCF is 3.27. The thresholds are as follows: Strongly Undervalued below 2.44, Undervalued between 2.44 and 2.86, Fairly Valued between 3.69 and 2.86, Overvalued between 3.69 and 4.10, and Strongly Overvalued above 4.10. The current Forward P/OCF of 3.13 falls within the Historic Trend Line -Fairly Valued range.

8.36

P/FCF

BP PLC. (BP) has a current P/FCF of 8.36. The 5-year average P/FCF is 6.58. The thresholds are as follows: Strongly Undervalued below 3.73, Undervalued between 3.73 and 5.15, Fairly Valued between 8.00 and 5.15, Overvalued between 8.00 and 9.42, and Strongly Overvalued above 9.42. The current Forward P/FCF of 8.36 falls within the Overvalued range.

BP PLC (BP) has a current Price-to-Book (P/B) ratio of 9.39. Compared to its 3-year average P/B ratio of 2.30 , the current P/B ratio is approximately 308.75% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about 391.84% higher. BP PLC (BP) has a Forward Free Cash Flow (FCF) yield of approximately 11.87%. Compared to its 3-year average FCF yield of 17.94%, the current FCF yield is approximately -33.84% lower. Relative to its 5-year average FCF yield of 15.57% , the current FCF yield is about -23.74% lower.

9.00

P/B

Median3y

2.30

Median5y

1.91

11.91

FCF Yield

Median3y

17.94

Median5y

15.57

Competitors Valuation Multiple

The average P/S ratio for BP's competitors is 0.50, providing a benchmark for relative valuation. BP PLC Corp (BP) exhibits a P/S ratio of 0.50, which is 0% above the industry average. Given its robust revenue growth of 2.47%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of BP increased by 15.81% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.78 to 3.12.

The secondary factor is the Revenue Growth, contributed 2.47%to the performance.

Overall, the performance of BP in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.47%

47.25B → 48.42B

Revenue Growth

300.00%

0.78 → 3.12

Margin Expansion

-286.66%

-191.32 → 357.12

P/E Change

15.81%

29.15 → 33.76

Mkt Cap Growth

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Frequently Asked Questions

Is BP PLC (BP) currently overvalued or undervalued?

What is BP PLC (BP) fair value?

BP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of BP PLC (BP) is between 20.46 to 35.93 according to relative valuation methord.

How does BP's valuation metrics compare to the industry average?

The average P/S ratio for BP's competitors is 0.50, providing a benchmark for relative valuation. BP PLC Corp (BP) exhibits a P/S ratio of 0.50, which is 0.00% above the industry average. Given its robust revenue growth of 2.47%, this premium appears unsustainable.

What is the current P/B ratio for BP PLC (BP) as of Dec 17 2025?

As of Dec 17 2025, BP PLC (BP) has a P/B ratio of 9.39. This indicates that the market values BP at 9.39 times its book value.

What is the current FCF Yield for BP PLC (BP) as of Dec 17 2025?

As of Dec 17 2025, BP PLC (BP) has a FCF Yield of 11.87%. This means that for every dollar of BP PLC’s market capitalization, the company generates 11.87 cents in free cash flow.

What is the current Forward P/E ratio for BP PLC (BP) as of Dec 17 2025?

As of Dec 17 2025, BP PLC (BP) has a Forward P/E ratio of 11.72. This means the market is willing to pay $11.72 for every dollar of BP PLC’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for BP PLC (BP) as of Dec 17 2025?

As of Dec 17 2025, BP PLC (BP) has a Forward P/S ratio of 0.50. This means the market is valuing BP at $0.50 for every dollar of expected revenue over the next 12 months.

BP Valuation