Is Equinor ASA ADR (EQNR) overvalued?
On Equity Rank's model estimate, EQNR trades 34% below its fair value. Equinor ASA ADR (EQNR) last closed at $41.99; the multi-method model fair value is $63.81.
| Price | Model fair value | Price vs model |
|---|---|---|
| $41.99 | $63.81 | 34% below |
What the answer rests on
- 9 of 12 valuation methods put EQNR's value above its price and 3 put it below, so the methods mostly agree.
- To justify today's price, EQNR's free cash flow would need to grow about 5.2% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -39.2% a year.
- EQNR trades at 8.9 times its last year's earnings, against a median of 14.9 for 110 profitable Energy companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 43% below to 30% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind EQNR's fair value · What prices assume · Other companies