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Is the BP share price good value at 436p?

Jack Brumby

Bp (LON:BP.) is a large cap engaged in the global energy business, with operations in Europe, North and South America, Australasia, Asia and Africa. The Company provides customers with fuel for transport, energy for heat and light, power for industry, and the petrochemicals products used to make everyday items such as paints, clothes and packaging.

Right now the BP share price appears to represent solid value, as shown in the group's Value Rank of 69. Let's explore this in more detail.


Digging into BP's Value Rank

Looking at BP's StockReport, we can see that the group has a:

  • Rolling price to book value of 1.21,
  • Trailing twelve month price to earnings ratio of 8.20
  • Trailing twelve month price to free cashflow of 11.5
  • Rolling dividend yield of 2.56%
  • Trailing twelve-month price to sales ratio of 0.43

This combination of financial traits suggests that, while BP stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Bp (LON:BP.) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.