Find your next quality investment with Simply Wall St’s easy and powerful screener, trusted by over 7 million individual investors worldwide.
Beyond the headline share price, you might be wondering whether Repsol at €21.23 is actually offering value or simply reflecting recent excitement in the stock.
Over the past week the share price return is 3.5%, the 30 day return is a 6.4% decline, year to date the return is 29.4%, and over 1 year it is 114.8%, set against 81.8% over 3 years and 164.5% over 5 years.
This mix of recent gains and pullbacks can often be linked to shifting expectations around commodity markets, capital allocation plans, or regulatory developments, as investors reassess both risk and potential rewards. For Repsol, these types of factors can influence how the market prices the stock even before any change in underlying long term fundamentals is clear.
Against this backdrop, Repsol currently holds a valuation score of 4 out of 6. This means it screens as undervalued on four of six checks. The next sections will walk through the main valuation approaches that produce this result before finishing with a broader way to think about what that fair value really means for you as an investor.
The Discounted Cash Flow model estimates what a company might be worth by projecting its future cash flows and then discounting them back to today, so you can compare that value directly with the current share price.
For Repsol, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections in €. The latest twelve month free cash flow is about €1.21b. Analysts provide estimates for several years ahead, and Simply Wall St then extends those projections further. For example, projected free cash flow for 2028 is €2.59b, with a ten year path that runs from about €2.88b in 2026 to around €2.57b in 2035 on the raw figures.
Once all those future cash flows are discounted back to today and combined with an estimated value beyond the explicit forecast period, the model arrives at an intrinsic value of roughly €42.06 per share. Compared with the current share price of €21.23, this calculation suggests the stock is 49.5% undervalued based on these inputs.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Repsol is undervalued by 49.5%. Track this in your watchlist or portfolio, or discover 237 more high quality undervalued stocks.
Story Continues
REP Discounted Cash Flow as at Apr 2026
For a profitable company like Repsol, the P/E ratio is a useful way to check how much you are paying for each euro of earnings, because it directly links the share price to the bottom line that ultimately supports returns to shareholders.
What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk profile. Higher expected growth or lower perceived risk tends to justify a higher multiple, while slower growth or higher risk usually supports a lower one.
Repsol currently trades on a P/E of 12.81x. This is above the peer group average of 11.89x, but below the Oil and Gas industry average of 15.53x. Simply Wall St’s Fair Ratio for Repsol is 16.73x. This is its proprietary view of what the P/E could be, given factors such as earnings growth, industry, profit margins, market cap and company specific risks.
The Fair Ratio is more tailored than a simple comparison with peers or the broad industry, because it aims to adjust for Repsol’s own mix of growth, risk and profitability rather than assuming all companies are alike. Since the current P/E of 12.81x is below the Fair Ratio of 16.73x, this framework suggests that the shares screen as undervalued on an earnings multiple basis.
Result: UNDERVALUED
BME:REP P/E Ratio as at Apr 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 98 top founder-led companies.
Earlier it was mentioned that there is an even better way to understand valuation, so this is where Narratives come in. They give you a simple story that connects your view of Repsol to specific forecasts for revenue, earnings and margins, and then into a Fair Value that you can compare with the current price to decide whether the shares look attractive. On Simply Wall St’s Community page you can see how this works in practice. One Repsol Narrative argues that Venezuela exposure and decarbonization headwinds justify a Fair Value around €13.61, while a more optimistic Narrative, focused on upstream growth and energy transition projects, supports a Fair Value closer to €20.00. Both of these Narratives update automatically as new earnings or news arrive, so you can choose the story that best matches your own expectations rather than relying on a single static model.
Do you think there’s more to the story for Repsol? Head over to our Community to see what others are saying!
BME:REP 1-Year Stock Price Chart
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.
Companies discussed in this article include REP.MC.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com