Royal Dutch Shell Plc

United Kingdom Country flag United Kingdom
Sector: Integrated Oil & Gas
Ticker: RDSB
ISIN: GB00B03MM408
Factsheet Factsheet

Market multiple valuation of Royal Dutch Shell Plc ( RDSB | GBR)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Royal Dutch Shell Plc is slightly lower than the median of its peer group: around 12.00. The company valuation of Royal Dutch Shell Plc according to these metrics is consistent with the market valuation of its peer group.
The P/Earnings NTM ratio of Royal Dutch Shell Plc is higher than the average of its sector (Integrated Oil & Gas): 11.14. The company valuation of Royal Dutch Shell Plc according to these metrics is above the market valuation of its sector.
The P/Earnings NTM ratio of Royal Dutch Shell Plc is lower than its historical 5-year average: 13.7. The (current) company valuation of Royal Dutch Shell Plc is therefore below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2020P/E NTM
Royal Dutch Shell PlcFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Integrated Oil & Gas5.4610.2411.14
Cboe UK 10016.8018.0315.27
United Kingdom5.1813.6113.66
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Beta (Ref: Cboe UK 100)
Levered betaUnlevered beta
1-Year1.511.00
2-Year1.480.98
3-Year1.440.95
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Stock Perf excl. Dividends (in GBP)
RDSBCboe UK 100Rel. Perf.
Year-to-Date-56.6%-23.3%-33.3%
1-Week-1.8%-3.9%2.1%
1-Month-10.2%-4.7%-5.5%
1-Year-58.3%-20.6%-37.6%
3-Year-57.0%-20.9%-36.1%
5-Year-37.6%-2.3%-35.3%
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International Peers - Royal Dutch Shell Plc
Company NameCtryMarket
Cap.
last (mUSD)
Royal Dutch Shell PlcGBR98 566
International Peers Median1.26
Equinor ASANOR47 378
Total SAFRA86 380
YPF SAARG2 680
Chevron Corp.USA134 130
Repsol SAESP10 380
GPRV Analysis
Royal Dutch Shell Pl...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Royal Dutch Shell Plc
  • Cboe UK 100
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).