We've been asking ourselves recently if the market has placed a fair valuation on Equinor ASA. Let's dive into some of the fundamental values of this large-cap Energy company to determine if there might be an opportunity here for value-minded investors.
Equinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and other forms of energy in Norway and internationally. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 7.54 and an average price to book (P/B) ratio of 1.68. In contrast, Equinor ASA has a trailing 12 month P/E ratio of 3.3 and a P/B ratio of 3.4.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Equinor ASA has moved -23.9% over the last year compared to -5.8% for the S&P 500 — a difference of -18.0%. Equinor ASA has a 52 week high of $42.53 and a 52 week low of $26.28.
