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.
Historical Valuation
Shell PLC (SHEL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 0.00 is considered Undervalued compared with the five-year average of 7.30. The fair price of Shell PLC (SHEL) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 75.12 USD , Shell PLC is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：75.12
Fair
Undervalued
11.92
PE
1Y
3Y
5Y
Trailing
Forward
4.69
EV/EBITDA
Shell PLC. (SHEL) has a current EV/EBITDA of 4.69. The 5-year average EV/EBITDA is 3.89. The thresholds are as follows: Strongly Undervalued below 2.84, Undervalued between 2.84 and 3.36, Fairly Valued between 4.41 and 3.36, Overvalued between 4.41 and 4.93, and Strongly Overvalued above 4.93. The current Forward EV/EBITDA of 4.69 falls within the Overvalued range.
8.28
EV/EBIT
Shell PLC. (SHEL) has a current EV/EBIT of 8.28. The 5-year average EV/EBIT is 6.53. The thresholds are as follows: Strongly Undervalued below 2.94, Undervalued between 2.94 and 4.74, Fairly Valued between 8.33 and 4.74, Overvalued between 8.33 and 10.12, and Strongly Overvalued above 10.12. The current Forward EV/EBIT of 8.28 falls within the Historic Trend Line -Fairly Valued range.
0.79
PS
Shell PLC. (SHEL) has a current PS of 0.79. The 5-year average PS is 0.63. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 and 0.54, Fairly Valued between 0.73 and 0.54, Overvalued between 0.73 and 0.83, and Strongly Overvalued above 0.83. The current Forward PS of 0.79 falls within the Overvalued range.
4.81
P/OCF
Shell PLC. (SHEL) has a current P/OCF of 4.81. The 5-year average P/OCF is 3.83. The thresholds are as follows: Strongly Undervalued below 2.69, Undervalued between 2.69 and 3.26, Fairly Valued between 4.40 and 3.26, Overvalued between 4.40 and 4.97, and Strongly Overvalued above 4.97. The current Forward P/OCF of 4.81 falls within the Overvalued range.
8.70
P/FCF
Shell PLC. (SHEL) has a current P/FCF of 8.70. The 5-year average P/FCF is 6.91. The thresholds are as follows: Strongly Undervalued below 4.33, Undervalued between 4.33 and 5.62, Fairly Valued between 8.19 and 5.62, Overvalued between 8.19 and 9.48, and Strongly Overvalued above 9.48. The current Forward P/FCF of 8.70 falls within the Overvalued range.
Shell PLC (SHEL) has a current Price-to-Book (P/B) ratio of 2.48. Compared to its 3-year average P/B ratio of 1.19 , the current P/B ratio is approximately 109.20% higher. Relative to its 5-year average P/B ratio of 1.13, the current P/B ratio is about 120.36% higher. Shell PLC (SHEL) has a Forward Free Cash Flow (FCF) yield of approximately 12.34%. Compared to its 3-year average FCF yield of 17.01%, the current FCF yield is approximately -27.45% lower. Relative to its 5-year average FCF yield of 15.75% , the current FCF yield is about -21.66% lower.
2.46
P/B
Median3y
1.19
Median5y
1.13
12.31
FCF Yield
Median3y
17.01
Median5y
15.75
Competitors Valuation Multiple
The average P/S ratio for SHEL's competitors is 0.71, providing a benchmark for relative valuation. Shell PLC Corp (SHEL) exhibits a P/S ratio of 0.79, which is 11.20% above the industry average. Given its robust revenue growth of -4.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SHEL increased by 20.19% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.18 to 7.95.
The secondary factor is the Revenue Growth, contributed -4.13%to the performance.
Overall, the performance of SHEL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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