{"id":50507,"date":"2026-05-28T03:26:33","date_gmt":"2026-05-28T03:26:33","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/50507\/"},"modified":"2026-05-28T03:26:33","modified_gmt":"2026-05-28T03:26:33","slug":"is-bp-lsebp-still-attractively-priced-after-a-55-one-year-surge","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/50507\/","title":{"rendered":"Is BP (LSE:BP.) Still Attractively Priced After A 55% One-Year Surge?"},"content":{"rendered":"\n

Make better investment decisions<\/a> with Simply Wall St’s easy, visual tools that give you a competitive edge.<\/p>\n

If you are trying to figure out whether BP at \u00a35.29 is still attractively priced or starting to look stretched, the valuation story is where to focus.<\/p>\n

The stock is up 20.8% year to date and 54.9% over the past year, even though it has fallen about 7.0% over the past week and 7.5% over the past month. These shifts can change how the balance of potential upside and risk feels.<\/p>\n

Recent headlines have kept BP in the spotlight, with investors weighing its position in global energy markets and its ongoing transition plans alongside broader sector sentiment. These themes often influence how investors think about future cash flows, which can feed directly into how the stock is priced.<\/p>\n

BP currently has a valuation score of 2 out of 6. Next up is a closer look at what different valuation approaches say about that score and why there may be an even more useful way to think about value by the end of this article.<\/p>\n

BP scores just 2\/6 on our valuation checks. See what other red flags we found in the full valuation breakdown<\/a>.<\/p>\n

Approach 1: BP Discounted Cash Flow (DCF) Analysis <\/p>\n

A Discounted Cash Flow, or DCF, model projects a company\u2019s future cash flows and then discounts them back to today\u2019s value, so you can compare that estimate with the current share price.<\/p>\n

For BP, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections rather than earnings multiples. The latest twelve month free cash flow is about US$10.23b. Analyst forecasts and extrapolations point to projected free cash flow of around US$12.60b in 2028, with a full 10 year path of estimates and extensions feeding into the valuation.<\/p>\n

Using these projections, Simply Wall St\u2019s DCF model arrives at an estimated intrinsic value of \u00a310.41 per share, compared with the current share price of \u00a35.29. That implies the stock trades at a 49.2% discount to the DCF estimate, which indicates that the shares are priced below this model\u2019s view of fair value.<\/p>\n

Result: UNDERVALUED<\/p>\n

Our Discounted Cash Flow (DCF) analysis suggests BP is undervalued by 49.2%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 9 more high quality undervalued stocks<\/a>.<\/p>\n

\"BP.<\/a> BP. Discounted Cash Flow as at May 2026 <\/p>\n

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for BP.<\/a><\/p>\n

Approach 2: BP Price vs Earnings <\/p>\n

For a profitable company, the P\/E ratio is a straightforward way to connect what you are paying for the stock with the earnings it is currently generating. It lets you compare how the market prices \u00a31 of BP\u2019s earnings against other options you could own.<\/p>\n

Story Continues <\/p>\n

What counts as a \u201cnormal\u201d or \u201cfair\u201d P\/E depends on how the market views a company\u2019s growth prospects and risk. Higher expected growth or lower perceived risk often go with a higher P\/E, while slower growth or higher risk usually come with a lower P\/E.<\/p>\n

BP currently trades on a P\/E of 34.3x. That sits above the Oil and Gas industry average of about 14.6x and the peer average of 12.7x. Simply Wall St\u2019s Fair Ratio for BP is 25.9x, which is its proprietary view of what BP\u2019s P\/E might be given factors such as earnings growth, profit margin, industry, market cap and risk.<\/p>\n

This Fair Ratio can be more informative than a simple comparison with peers or the industry, because it adjusts for BP\u2019s specific profile instead of assuming one size fits all. Comparing the Fair Ratio of 25.9x with the actual P\/E of 34.3x suggests the stock is trading above that fair level.<\/p>\n

Result: OVERVALUED<\/p>\n

\"LSE:BP.<\/a> LSE:BP. P\/E Ratio as at May 2026 <\/p>\n

P\/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 7 top founder-led companies<\/a>.<\/p>\n

Upgrade Your Decision Making: Choose your BP Narrative <\/p>\n

Earlier it was mentioned that there is an even better way to understand valuation. Narratives are introduced as a simple way for you to attach a story about BP to the numbers, by connecting your assumptions for future revenue, earnings and margins to a fair value that you can compare with today\u2019s price.<\/p>\n

A Narrative on Simply Wall St\u2019s Community page lets you set out what you believe is driving BP, link that story to a forecast, then see the fair value that results from those assumptions in an accessible format used by millions of investors.<\/p>\n

Because Narratives continually refresh when new information such as news, guidance or earnings is added to the platform, you can see how your view of BP evolves and decide whether the gap between fair value and the live share price suggests adding, trimming or waiting.<\/p>\n

For BP, one investor might build a cautiously balanced Narrative around the analyst consensus fair value of about \u00a36.19. Another might lean into a more optimistic Narrative aligned with the higher \u00a37.02 fair value. Comparing either of those to the current price helps each investor decide which story feels more reasonable for their own approach.<\/p>\n

Do you think there’s more to the story for BP? Head over to our Community to see what others are saying!<\/a><\/p>\n

\"LSE:BP.<\/a> LSE:BP. 1-Year Stock Price Chart <\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n

Companies discussed in this article include BP.L<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Make better investment decisions with Simply Wall St’s easy, visual tools that give you a competitive edge. If…\n","protected":false},"author":2,"featured_media":42188,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21198],"tags":[67,6704,25270,20874,1839,7939,21116,5692,5758,25271],"class_list":["post-50507","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bp","tag-bp","tag-bp-plc","tag-cash-flow-projections","tag-dcf","tag-fair-value","tag-free-cash-flow","tag-future-cash-flows","tag-share-price","tag-stock-trades","tag-valuation"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116650074659766906","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/50507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=50507"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/50507\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/42188"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=50507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=50507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=50507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}