BWLP Valuation

BW LPG Ltd

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14.900

+0.16(1.085%)1D

Overview
Forecast
Valuation
Earnings

BWLP Relative Valuation

BWLP'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, BWLP is overvalued; if below, it's undervalued.

Historical Valuation

BW LPG Ltd (BWLP) is now in the Fair zone, suggesting that its current forward PE ratio of 7.93 is considered Fairly compared with the five-year average of 5.43. The fair price of BW LPG Ltd (BWLP) is between 7.95 to 16.01 according to relative valuation methord.

Relative Value

Fair Zone

7.95-16.01

Current Price：14.90

Fair

7.93

Trailing

Forward

5.46

EV/EBITDA

BW LPG Ltd. (BWLP) has a current EV/EBITDA of 5.46. The 5-year average EV/EBITDA is 4.45. The thresholds are as follows: Strongly Undervalued below 2.32, Undervalued between 2.32 and 3.39, Fairly Valued between 5.52 and 3.39, Overvalued between 5.52 and 6.59, and Strongly Overvalued above 6.59. The current Forward EV/EBITDA of 5.46 falls within the Historic Trend Line -Fairly Valued range.

9.47

EV/EBIT

BW LPG Ltd. (BWLP) has a current EV/EBIT of 9.47. The 5-year average EV/EBIT is 8.06. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 4.44, Fairly Valued between 11.67 and 4.44, Overvalued between 11.67 and 15.29, and Strongly Overvalued above 15.29. The current Forward EV/EBIT of 9.47 falls within the Historic Trend Line -Fairly Valued range.

2.74

BW LPG Ltd. (BWLP) has a current PS of 2.74. The 5-year average PS is 2.02. The thresholds are as follows: Strongly Undervalued below 0.96, Undervalued between 0.96 and 1.49, Fairly Valued between 2.54 and 1.49, Overvalued between 2.54 and 3.07, and Strongly Overvalued above 3.07. The current Forward PS of 2.74 falls within the Overvalued range.

4.55

P/OCF

BW LPG Ltd. (BWLP) has a current P/OCF of 4.55. The 5-year average P/OCF is 2.98. The thresholds are as follows: Strongly Undervalued below 1.08, Undervalued between 1.08 and 2.03, Fairly Valued between 3.93 and 2.03, Overvalued between 3.93 and 4.88, and Strongly Overvalued above 4.88. The current Forward P/OCF of 4.55 falls within the Overvalued range.

4.08

P/FCF

BW LPG Ltd. (BWLP) has a current P/FCF of 4.08. The 5-year average P/FCF is -6.80. The thresholds are as follows: Strongly Undervalued below -83.87, Undervalued between -83.87 and -45.33, Fairly Valued between 31.73 and -45.33, Overvalued between 31.73 and 70.27, and Strongly Overvalued above 70.27. The current Forward P/FCF of 4.08 falls within the Historic Trend Line -Fairly Valued range.

BW LPG Ltd (BWLP) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.04 , the current P/B ratio is approximately 21.76% higher. Relative to its 5-year average P/B ratio of 0.88, the current P/B ratio is about 43.62% higher. BW LPG Ltd (BWLP) has a Forward Free Cash Flow (FCF) yield of approximately -7.49%. Compared to its 3-year average FCF yield of 25.54%, the current FCF yield is approximately -129.34% lower. Relative to its 5-year average FCF yield of 28.12% , the current FCF yield is about -126.66% lower.

1.27

P/B

Median3y

1.04

Median5y

0.88

-7.49

FCF Yield

Median3y

25.54

Median5y

28.12

Competitors Valuation Multiple

The average P/S ratio for BWLP's competitors is 2.51, providing a benchmark for relative valuation. BW LPG Ltd Corp (BWLP) exhibits a P/S ratio of 2.74, which is 8.95% above the industry average. Given its robust revenue growth of -16.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Himalaya Shipping Ltd

2.41

-4.17%

348.19M

Performance Decomposition

Market capitalization of BWLP decreased by 5.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 5.09 to 8.01.

The secondary factor is the Revenue Growth, contributed -16.99%to the performance.

Overall, the performance of BWLP in the past 1 year is driven by P/E Change. Which is more unsustainable.

-16.99%

1.04B → 862.07M

Revenue Growth

-46.46%

14.42 → 7.72

Margin Expansion

57.46%

5.09 → 8.01

P/E Change

-5.99%