Woodside Energy Group (ASX:WDS): Revisiting Valuation After Recent Share Price Pullback

Latest move in Woodside Energy Group shares

Woodside Energy Group (ASX:WDS) has slipped about 8% over the past month, even though the stock is roughly flat over the past 3 months and modestly higher over the past year.

See our latest analysis for Woodside Energy Group.

That recent 1 month share price return of about negative 8% stands in contrast to a mildly positive 1 year total shareholder return. This suggests momentum has cooled as investors reassess growth prospects and near term earnings risk.

If Woodside’s pullback has you rethinking your energy exposure, it could be a good moment to compare it with other aerospace and defense stocks that are reacting differently to shifting macro risks.

With Woodside trading below consensus price targets despite modest revenue growth and softer profits, the key question now is simple: is this dip flagging a genuine value opportunity, or has the market already priced in future growth?

Most Popular Narrative: 15.5% Undervalued

With Woodside closing at A$23.16 against a narrative fair value near A$27.42, the valuation hinges on how its LNG growth and margins evolve.

The analysts have a consensus price target of A$26.999 for Woodside Energy Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of A$42.16, and the most bearish reporting a price target of just A$22.76.

Read the complete narrative.

Curious how shrinking margins, flatlining revenues and a richer future earnings multiple can still add up to upside from here? The full narrative explains those moving parts step by step and highlights the single valuation lever doing most of the heavy lifting.

Result: Fair Value of $27.42 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, faster decarbonization policies and project delays or cost overruns could still undercut LNG demand assumptions and pressure Woodside’s long term earnings trajectory.

Find out about the key risks to this Woodside Energy Group narrative.

Build Your Own Woodside Energy Group Narrative

If you would rather challenge this view or lean on your own analysis, you can quickly build a custom narrative in under three minutes: Do it your way.

A great starting point for your Woodside Energy Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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