Woodside Energy Group Ltd (WDS)
Energy · NYQ · US
Fundamentals
Valuation and ratings
Woodside Energy Group Ltd trades at USD20.60, close to the USD18.89 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 52 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 14.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Woodside Energy Group Ltd
Woodside Energy Group Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in the Asia Pacific, Africa, the Americas, and the Europe. It produces liquefied natural gas, pipeline gas, crude oil and condensate, and natural gas liquids. The company holds interests in the Pluto LNG, North West Shelf, Wheatstone and Julimar-Brunello, Bass Strait, Ngujima-Yin FPSO, Okha FPSO, Pyrenees FPSO, Macedon, Shenzi, Mad dog, Greater Angostura, as well as Scarborough, Sangomar, Trion, Calypso, Browse, Liard, Ruby, Sangomar, Atlantis, Woodside Solar opportunity, and Sunrise and Troubadour. It is also involved in the development of new energy products and lower-carbon services. The company was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022. Woodside Energy Group Ltd was founded in 1954 and is headquartered in Perth, Australia.
WDS passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Woodside Energy Group Ltd (WDS) undervalued?
Against our discounted cash flow estimate of USD18.89, WDS at USD20.60 is 8% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is WDS's P/E ratio?
WDS trades at 14.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.