Assessing Woodside Energy Group’s Valuation As LNG Deals And Beaumont Project Progress Shape Investor Expectations

Investor interest in Woodside Energy Group (ASX:WDS) has picked up as the company progresses its Beaumont New Ammonia facility in Texas and locks in long term LNG supply contracts, alongside a key production update later this month.

See our latest analysis for Woodside Energy Group.

Despite progress at Beaumont and new LNG contracts, Woodside’s recent technical downtrend and 30 day share price return of 7.83% set against a 5 year total shareholder return of 22.93% suggest longer term gains alongside fading short term momentum.

If this kind of project pipeline interests you, it could be a good moment to broaden your search and check out aerospace and defense stocks as another source of ideas.

With Woodside trading at A$22.95, sitting on a 5 year total shareholder return of 22.93% and a value score of 5, should you view this as an undervalued energy name, or has the market already priced in future growth?

Most Popular Narrative: 16.3% Undervalued

With Woodside closing at A$22.95 against a narrative fair value of A$27.42, the current pricing sits below what this widely followed model implies.

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.

What kind of earnings reset still supports a higher valuation than today? The narrative leans on shrinking margins, softer revenues, and a richer future earnings multiple. Curious which assumptions really carry that A$27.42 estimate?

Result: Fair Value of A$27.42 (UNDERVALUED)

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

However, this narrative could be knocked off course if long term LNG demand expectations are revised lower, or if major projects run into cost or schedule issues.

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

Build Your Own Woodside Energy Group Narrative

If you are not fully on board with this view or prefer to stress test the numbers yourself, you can spin up a custom narrative in just a few minutes. To get started, use 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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