If you’re wondering whether BWG is trading at a bargain or premium right now, you’re in the right place. Let’s put its recent performance and valuation under the microscope.
BWG’s share price has been on a ride, dipping 4.9% in the past week and 2.3% over the last month. It is still up 155.3% over the past three years.
Investors are watching closely as recent sector acquisitions and shifts in regulatory sentiment have added fresh fuel to market expectations, raising both hopes and questions. These news headlines have clearly influenced recent price moves, indicating that the BWG story is far from settled.
BWG currently holds a valuation score of 5 out of 6 on our six-point checklist, suggesting it is undervalued in most key areas. Before drawing conclusions, stay with us as we break down the major valuation approaches and explore a more informed way to identify real value.
BWG delivered 2.5% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry.
The Discounted Cash Flow (DCF) model is used to estimate the fair value of a business by projecting its expected future cash flows and then discounting them back to today’s value. This approach helps investors understand whether a stock’s market price reflects its underlying financial potential.
For BWG, the latest reported Free Cash Flow stands at $211 million. Looking ahead, analysts expect Free Cash Flow to reach $536.5 million in 2026 and $363 million in 2027, with further annual projections tapering off to around $186.6 million by 2035 as estimated by Simply Wall St. These cash flows, expressed in dollars, are all projected values before they are discounted to their present value.
Applying a 2 Stage Free Cash Flow to Equity model, the DCF analysis calculates an intrinsic value of $315.93 per share. Based on current market pricing, this implies that BWG is trading at a 60.6% discount to its intrinsic value, indicating the stock is substantially undervalued using this method.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests BWG is undervalued by 60.6%. Track this in your watchlist or portfolio, or discover 933 more undervalued stocks based on cash flows.
BWLPG Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for BWG.
The Price-to-Earnings (PE) ratio is a widely used valuation tool for profitable companies because it directly relates a company’s share price to its per-share earnings. It allows investors to gauge how much they are paying for a company’s current ability to generate profit, making it a practical measure for established and consistently profitable firms like BWG.
A “normal” or “fair” PE ratio depends largely on growth expectations and the level of risk associated with future earnings. Companies that are expected to grow earnings rapidly or present lower risk typically command higher PE multiples. In contrast, slower growth or greater uncertainty can justify lower ratios.
BWG trades at a PE ratio of 8.56x. By comparison, the Oil and Gas industry average stands at 13.22x, and direct peers average 9.07x. At first glance, BWG’s valuation might seem conservative relative to these benchmarks.
This is where Simply Wall St’s proprietary “Fair Ratio” comes in. Unlike a basic industry or peer comparison, the Fair Ratio (6.06x for BWG) tailors the expected multiple by accounting for the company’s earnings growth, risk profile, profit margins, market capitalization, and industry dynamics. This more nuanced perspective provides a much clearer signal of the stock’s valuation than simply comparing with peers or sector norms.
With BWG’s actual PE (8.56x) sitting above the Fair Ratio (6.06x) by a meaningful margin, the data points toward BWG trading at a premium to its fair value as calculated on a fundamentals-adjusted basis.
Result: OVERVALUED
OB:BWLPG PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personal investment story. It is how you interpret BWG’s journey by combining your expectations of financial performance, such as revenue, profit margins, and fair value, with your unique perspective on the company’s prospects.
Unlike static ratios or models, Narratives connect a company’s story to a financial forecast and then to a fair value, letting you see how your own outlook translates into a concrete investment signal. Using Simply Wall St’s Community page, millions of investors easily create and update their Narratives, making the process accessible for all experience levels.
Narratives make buy or sell decisions clearer by constantly comparing your Fair Value with the current share price. Because they update automatically with fresh news, regulatory shifts, or earnings releases, your view of BWG adapts in real time. For example, some investors see BWG’s fair value near NOK185.02 based on optimistic demand and operational strength, while others are more cautious, setting fair value at NOK158.03 due to market uncertainties and risk factors.
Do you think there’s more to the story for BWG? Head over to our Community to see what others are saying!
OB:BWLPG Community Fair Values as at Nov 2025
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 BWLPG.OL.
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