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SHEL Valuation

Shell PLC
$
73.660
-0.16(-0.217%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

SHEL Relative Valuation

SHEL'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, SHEL is overvalued; if below, it's undervalued.
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Historical Valuation

Shell PLC (SHEL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 11.09 is considered Overvalued compared with the five-year average of 7.79. The fair price of Shell PLC (SHEL) is between 46.51 to 71.52 according to relative valuation methord. Compared to the current price of 73.66 USD , Shell PLC is Overvalued By 2.99%.
Relative Value
Fair Zone
46.51-71.52
Current Price:73.66
2.99%
Overvalued
11.09
PE
1Y
3Y
5Y
Trailing
Forward
4.70
EV/EBITDA
Shell PLC. (SHEL) has a current EV/EBITDA of 4.70. The 5-year average EV/EBITDA is 3.88. The thresholds are as follows: Strongly Undervalued below 2.84, Undervalued between 2.84 and 3.36, Fairly Valued between 4.40 and 3.36, Overvalued between 4.40 and 4.92, and Strongly Overvalued above 4.92. The current Forward EV/EBITDA of 4.70 falls within the Overvalued range.
8.26
EV/EBIT
Shell PLC. (SHEL) has a current EV/EBIT of 8.26. The 5-year average EV/EBIT is 6.88. The thresholds are as follows: Strongly Undervalued below 1.74, Undervalued between 1.74 and 4.31, Fairly Valued between 9.45 and 4.31, Overvalued between 9.45 and 12.03, and Strongly Overvalued above 12.03. The current Forward EV/EBIT of 8.26 falls within the Historic Trend Line -Fairly Valued range.
0.77
PS
Shell PLC. (SHEL) has a current PS of 0.77. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.51, Fairly Valued between 0.71 and 0.51, Overvalued between 0.71 and 0.81, and Strongly Overvalued above 0.81. The current Forward PS of 0.77 falls within the Overvalued range.
4.91
P/OCF
Shell PLC. (SHEL) has a current P/OCF of 4.91. The 5-year average P/OCF is 3.74. The thresholds are as follows: Strongly Undervalued below 2.65, Undervalued between 2.65 and 3.19, Fairly Valued between 4.28 and 3.19, Overvalued between 4.28 and 4.82, and Strongly Overvalued above 4.82. The current Forward P/OCF of 4.91 falls within the Strongly Overvalued range.
9.25
P/FCF
Shell PLC. (SHEL) has a current P/FCF of 9.25. The 5-year average P/FCF is 6.84. The thresholds are as follows: Strongly Undervalued below 4.38, Undervalued between 4.38 and 5.61, Fairly Valued between 8.06 and 5.61, Overvalued between 8.06 and 9.29, and Strongly Overvalued above 9.29. The current Forward P/FCF of 9.25 falls within the Overvalued range.
Shell PLC (SHEL) has a current Price-to-Book (P/B) ratio of 1.19. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately 4.08% higher. Relative to its 5-year average P/B ratio of 1.08, the current P/B ratio is about 10.01% higher. Shell PLC (SHEL) has a Forward Free Cash Flow (FCF) yield of approximately 13.56%. Compared to its 3-year average FCF yield of 17.45%, the current FCF yield is approximately -22.30% lower. Relative to its 5-year average FCF yield of 16.08% , the current FCF yield is about -15.68% lower.
1.19
P/B
Median3y
1.14
Median5y
1.08
13.56
FCF Yield
Median3y
17.45
Median5y
16.08
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Competitors Valuation Multiple

The average P/S ratio for SHEL's competitors is 1.42, providing a benchmark for relative valuation. Shell PLC Corp (SHEL) exhibits a P/S ratio of 0.77, which is -45.53% above the industry average. Given its robust revenue growth of -12.17%, this premium appears unsustainable.
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Performance Decomposition

1Y
3Y
5Y
Market capitalization of SHEL increased by 2.79% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.90 to 5.57.
The secondary factor is the P/E Change, contributed 1.29%to the performance.
Overall, the performance of SHEL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
-12.17%
74.46B → 65.41B
Revenue Growth
+
13.67%
4.90 → 5.57
Margin Expansion
+
1.29%
16.22 → 16.43
P/E Change
=
2.79%
71.66 → 73.66
Mkt Cap Growth

FAQ

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Is Shell PLC (SHEL) currently overvalued or undervalued?

Shell PLC (SHEL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 11.09 is considered Overvalued compared with the five-year average of 7.79. The fair price of Shell PLC (SHEL) is between 46.51 to 71.52 according to relative valuation methord. Compared to the current price of 73.66 USD , Shell PLC is Overvalued By 2.99% .
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What is Shell PLC (SHEL) fair value?

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

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What is the current P/B ratio for Shell PLC (SHEL) as of Aug 27 2025?

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What is the current FCF Yield for Shell PLC (SHEL) as of Aug 27 2025?

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What is the current Forward P/E ratio for Shell PLC (SHEL) as of Aug 27 2025?

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What is the current Forward P/S ratio for Shell PLC (SHEL) as of Aug 27 2025?