Galp Energia SGPS (ENXTLS:GALP) delivered steady results this period, as the stock held close to flat over the past week and month. With moderate annual revenue and net income growth, the stability in share price has drawn investor attention.
See our latest analysis for Galp Energia SGPS.
Looking at the bigger picture, Galp Energia SGPS’s 1-year total shareholder return stands at 1.04%, showing only faint momentum despite a remarkable 75.8% total return over three years and 147.7% over five. While short-term price moves have been modest, this longer-term outperformance suggests that investors remain cautiously optimistic about Galp’s growth and risk profile.
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With shares still trading at a notable discount to analyst price targets and modest revenue growth reported, investors now face a familiar dilemma: is Galp currently undervalued, or has the market already priced in its future prospects?
Galp Energia SGPS is currently trading at a price-to-earnings (P/E) ratio of 11.4x, which is noticeably lower than both its peer group and industry averages. This makes the stock appear attractive relative to recent earnings performance.
The price-to-earnings ratio measures how much investors are willing to pay for each euro of earnings generated by the company. In the oil and gas sector, this multiple is a standard way to compare valuation, especially for companies with established profitability.
With Galp’s P/E below both the peer average of 15x and the European oil and gas industry average of 13.8x, it is clear that the market is valuing Galp’s profits more conservatively than its competitors. This could suggest a disconnect between perceived risks or future prospects versus what is reflected in reported earnings. If the market’s expectation changes, there is room for the multiple to rise toward sector norms.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 11.4x (UNDERVALUED)
However, sustained low revenue and net income growth, along with a cautious market attitude, could limit further upside even though there is a valuation discount.
Find out about the key risks to this Galp Energia SGPS narrative.
While the price-to-earnings ratio suggests Galp is undervalued, our DCF model points to an even steeper discount. With shares trading about 53% below our €34.02 fair value estimate, this method hints at an even larger opportunity. Does this signal a true bargain or a red flag?
Look into how the SWS DCF model arrives at its fair value.
GALP Discounted Cash Flow as at Oct 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Galp Energia SGPS for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Keep in mind, if you have a different perspective or want to conduct your own analysis, you can easily develop your own narrative in just a few minutes. Do it your way
A great starting point for your Galp Energia SGPS research is our analysis highlighting 1 key reward and 1 important warning sign 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.
Companies discussed in this article include GALP.enxtls.
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