BP p.l.c.
BP p.l.c., an integrated energy company, engages in the oil and gas business worldwide. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, marketing, and trading activities, as well as so…
BP p.l.c., an integrated energy company, engages in the oil and gas business worldwide. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, marketing, and trading activities, as well as solar, wind, and hydrogen businesses. The company also offers aviation fuel products and services, such as jet fuel; aviation gasoline; UL91 aviation fuel; and sustainable aviation fuel. In addition, it engages in the convenience and retail fuel; EV charging; Castrol lubricants and fluids; B2B; midstream; crude oil production; refining and oil trading; and bioenergy businesses. The company was founded in 1908 and is headquartered in London, the United Kingdom.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Showing the EV/EBITDA (12x) you selected on the company card, using 2% growth, 2.5% terminal growth and 9.2% discount. The range varies these assumptions slightly; it is illustrative, not investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
Assumptions: growth 2%, discount rate 9.20%, terminal growth 2.50% (sector defaults). See a worked example.
Blended growth assumption: 2.0% (sector default 4.6%, own revenue history -7.8%, analyst revenue consensus -7.2%).
Analyst consensus expects revenue growth of -7.2% a year; the growth assumption used is 2.0%.
Adjust assumptions
Show the recommended model instead
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 6.85 (+24.1%)
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EPS-based Gordon proxy
— GBP 0.05 (-99.1%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— GBP 8.35 (+51.3%)
Not used: Free cash flow is 204.9x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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FCFF (steady state)
— GBP 8.59 (+55.5%)
Not used: Free cash flow is 204.9x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/EBITDA (12x)
— GBP 20.90 (+278.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— GBP 8.36 (+51.5%)
Not used: Free cash flow is 204.9x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/Sales (Rule of 40)
— GBP 41.09 (+644.4%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 17.04 | 67.6% |
| Base GBP 20.90 | 73.6% |
| Bull GBP 24.76 | 77.7% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 70 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue -7.5% a year | 4 / 20 |
| Balance sheet | net debt 0.6x EBITDA | 20 / 20 |
| Margins | EBITDA margin 19% | 10 / 20 |
Peers in Energy
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| BP.L (this company) | GBP 5.52 | 19.4% | – | – | 4.4% | 69 |
| HBR.L Harbour Energy plc | GBP 2.62 | 61.8% | – | 1.4 | 7.9% | 92 |
| FANG Diamondback Energy | USD 178.39 | 37.1% | 24.3 | 1.3 | 2.4% | 100 |
| SHEL.L Shell plc | GBP 36.78 | 33.2% | 8.5 | 1.4 | 3.0% | 84 |
| AKSO.OL Aker Solutions ASA | NOK 35.96 | 22.8% | 6.8 | 1.5 | 9.1% | 75 |
| BWLPG.OL BW LPG Limited | NOK 206.40 | 8.2% | 7.5 | 1.7 | 1.3% | 100 |
| EOG EOG Resources | USD 144.79 | 6.2% | 11.1 | 2.4 | 2.8% | 92 |
| TTE.PA TotalEnergies SE | EUR 78.59 | 6.1% | 8.8 | 1.5 | 4.3% | 84 |
| ENB.TO Enbridge Inc. | CAD 66.75 | -10.4% | 19.5 | 2.3 | 5.9% | 80 |
| Peer median | 8.8 | 1.5 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.05% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.002 |
| 2025 | 0.002 |
| 2024 | 0.002 |
| 2023 | 0.002 |
| 2022 | 0.002 |
| 2021 | 0.002 |
Annual financial statement
Saved annual report · Fiscal year 2025 · Yahoo Finance annual statements · period ended 31 Dec 2025
| Revenue | GBP 189,335,000,000 |
|---|---|
| EBITDA | GBP 30,696,000,000 |
| EBIT | GBP 12,874,000,000 |
| Net income | GBP 55,000,000 |
| Free cash flow | GBP 11,272,000,000 |
| Capital expenditures | GBP -13,221,000,000 |
| Debt | GBP 72,529,000,000 |
| Cash | GBP 36,714,000,000 |
| Working capital | GBP 21,205,000,000 |
| Shares outstanding | 15,913,000,000 |
| Reported dividends per share | GBP 0.2451 |