BP p.l.c. (BP) is currently trading at more than a 50% discount in comparison to the other major global integrated energy firms. BP is still in the midst of its transformation and divestment phase that will last into 2014. Most of its exploration, core operations and developments are geared for the long term, with start-up projections ranging from the end of 2013 into 2015. BP is still enduring headwinds from pressures in commodity prices, production impediments, and increasing opposition from the DOJ regarding the Deepwater Horizon trial set for January 2013. Fortunately for BP, it’s had recent success in developments worldwide.
Integrated energy firms like TOTAL S.A. (TOT), Exxon Mobil Corporation (XOM), Chevron Corporation (CVX) and ConocoPhillips (COP) are most comparable to BP due to their large market caps and diverse global portfolios. BP’s stock price is lower than all of these firms; its stock is less than half the price of Chevron or Exxon Mobil. BP’s market cap is around $128 billion, it’s the third largest behind Chevron’s $220 billion and Exxon’s $405 billion. BP’s price is around 7.5 times earnings, BP’s price-to-sales ratio is around 0.33 and its price-to-book ratio is around 1.14; all of these are the lowest amongst these firms. ConocoPhillips has the highest price of around 10.6 times earnings and the highest price-to-sales ratio around 1.03.
Total has the closest price-ratios to BP, its price-to-sales ratio is around 0.53 and its price-to-book ratio is 1.24. Total S.A has the highest sales growth of around 10.1% in the last quarter, YOY. To continue reading, click here.