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Shell plc (SHELL) Fair Value & Analysis

Energy · NL · Market cap €206B

SP Shell plc SHELL · AS
Price€38.79
Fair Value€46.09
Upside+18.8%
Quality65/100
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Mixed Growth
Thin margins · 7.0% net margin
Low debt · generates free cash flow
4.01% dividend yield
Moderate moat 51/100
Evidence: High Range €34.57 – €59.75 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from €45.89 to €46.09 (+0.4%) since Jun 24, 2026. Share price +8.6% over the past month.

A solid business, screening 19% undervalued on our models.

What matters now

  • Our model range runs from €34.57 (bear) to €59.75 (bull), base €46.09. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 65/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

€40.69 €12.89 Fair Value €46.09 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range €12.89 – €40.69 · fair‑value band €34.57 – €59.75 · the €38.79 price screens below the €46.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Shell plc (SHELL) currently trades at €38.79, while our model-based Fair Value estimate is €46.09, implying the stock looks roughly 18.8% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Shell plc generated revenue of €267B at a net margin of 7.0%. Revenue grew 0.7% year over year. It earns a return on equity of 10.7%. Net debt stands at €74.5B. Fundamentals as of Jul 18, 2026

Our scenario range runs from €34.57 (bear case) to €59.75 (bull case); at €38.79, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 38% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -25% fair-value upside, at 19%, SHELL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF €41.03 €58.07 €88.39 80
Residual Income €28.56 €32.37 €54.45 76
Rev-Margin DCF €36.93 €56.38 €80.18 74
All 24 models by family
DCF Models
FCF DCF €38.92 €56.32 €89.80 38
Owner Earnings €37.58 €54.41 €86.80 31
5Y Revenue Exit €36.93 €55.45 €82.37 39
5Y EBITDA Exit €36.71 €55.06 €79.39 41
5Y P/E Exit €31.68 €46.35 €63.93 38
10Y Revenue Exit €36.21 €50.35 €65.57 36
10Y EBITDA Exit €37.21 €50.11 €63.78 37
10Y P/E Exit €34.08 €44.59 €54.50 35
Earnings-Based
Graham-Dodd €22.39 €27.36 €30.78 54
EPV €33.06 €39.27 €44.79 59
Dividend Discount
Gordon GGM €15.04 €16.54 €18.85 70
DDM Multi-Stage €15.04 €19.19 €25.20 61
Multiples
P/E Multiple €34.57 €46.09 €57.61 63
P/S Multiple €41.98 €55.97 €69.96 58
P/B Multiple €41.98 €55.97 €69.96 55
EV/EBIT €40.36 €54.53 €68.70 53
EV/EBITDA €41.77 €56.41 €71.05 54
EV/Revenue €39.22 €56.96 €74.69 43
Asset-Based
NCAV (Graham) €15.77 €21.13 €31.54 50
Growth DCF
Growth DCF €41.03 €58.07 €88.39 80
Rev-Margin DCF €36.93 €56.38 €80.18 74
Economic Profit
Residual Income €28.56 €32.37 €54.45 76
ROIC Compounder €33.06 €40.32 €48.60 72
Growth Earnings
Growth-Adj P/E €24.87 €35.53 €46.19 68

Widest divergence: Growth DCF (€56.38) versus Dividend Discount (€16.54). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) €267B
Revenue growth (YoY) +0.7%
Net margin 7.0%
Return on equity 10.7%
Free cash flow €22.3B FY2025
P/E ratio 13.2
More key figures
Operating margin 14.9%
EPS (TTM) €2.82
Dividend yield 4.0%
EPS growth (YoY) +26.6%
Net debt €74.5B FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 62 · Market factors (momentum, volatility) 74

Profitability 39
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Shell plc operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and other parts of the Americas. It operates through the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions.

Full company description

Shell plc operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and other parts of the Americas. It operates through the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions. The company explores for and extracts natural gas to produce liquefied natural gas or convert it into gas-to-liquids (GTL) fuels and other products; explores for and extracts crude oil, natural gas, and natural gas liquids; and operates marketing and transportation of oil, gas, and liquids, supported by the infrastructure required to deliver them to market or to process them within Shell's chemical manufacturing plants and refineries. It is also involved in marketing, which includes mobility, lubricants, and sectors focused on decarbonization; operates a retail network, including electric vehicle charging, convenience retail, and the wholesale commercial fuels business for transport and industry; sells products for road transport and machinery in manufacturing, mining, power generation, agriculture, and construction; and provides low-carbon energy solutions, such as biofuels, to a broad range of commercial customers, including those in the aviation, marine, and agriculture sectors. In addition, the company offers chemicals and products, including chemicals manufacturing plants with their own marketing network, and refineries that turn crude oil and other feedstocks into a range of oil products, which are moved and marketed around the world for domestic, industrial, and transport use; and operates a pipeline business, trading, and optimization of crude oil, oil products, and petrochemicals. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1897 and is headquartered in London, United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shell plc reported revenue of €273B in FY2025 versus €262B in FY2021, a compound +1.1%/yr. Reported net income was €18.2B in FY2025, compounding −2.4%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€273B
Latest YoY
−4.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−10.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.6%
Avg. growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Revenue +1.1%/yr
FY21 €262B
FY22 €381B
FY23 €317B
FY24 €284B
FY25 €273B
Net income −2.4%/yr
FY21 €20.1B
FY22 €42.3B
FY23 €19.4B
FY24 €16.1B
FY25 €18.2B
Character of growth · EPS growth decomposed (2014-2025) +8.2 % p.a.
Revenue per share −0.1 pp

of which total revenue −1.3 pp · buybacks/dilution +1.2 pp

EBIT margin +13.4 pp
Tax rate +0.2 pp
Residual (interest, one-offs) −5.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Shell plc Fair Value". https://www.fairvalue-calculator.com/stock/SHELL

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Integrated stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Saudi Arabian Oil Company 2222 26.72 SAR 20.14 SAR -25%
Exxon Mobil Corporation XOM $144.51 $90.37 -37%
Chevron Corporation CHEV C$22.88 C$7.97 -65%
PetroChina Company 601857 ¥10.29 ¥16.51 +60%
TotalEnergies SE TTE C$13.80 C$7.92 -43%
Petróleo Brasileiro S.A PETR3 12,540 ARS 30,914 ARS +147%
BP p.l.c., an integrated energy company, BP $40.83 $12.71 -69%
China Petroleum & Chemical Corporation 600028 ¥5.03 ¥4.46 -11%
Equinor ASA EQNR $36.19 $34.53 -5%
Eni S.p.A ENI €21.70 €15.13 -30%

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Frequently asked questions

Is Shell plc (SHELL) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of €46.09 versus a price of €38.79, about +19% (undervalued).
What is the fair value of SHELL?
Our model-based fair value for Shell plc is €46.09 (as of Jul 18, 2026), built from audited fundamentals. The current price is €38.79.
What is the quality score of SHELL?
Shell plc has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Shell plc (SHELL)?
Shell plc reported trailing-twelve-month revenue of about €267B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SHELL?
The net profit margin of Shell plc is about 7.0%, meaning it keeps roughly 7.0% of revenue as net income. Based on the latest reported figures.
Does Shell plc pay a dividend?
Shell plc currently shows a dividend yield of about 4.10% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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