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CNOOC Limited (600938) Fair Value & Analysis

Energy · CN · Market cap 1.4T CNY (≈ $206B) · ISIN CNE100005980

What is CNOOC Limited really worth?

CL CNOOC Limited 600938 · SHG
Price¥33.41
Fair Value¥32.55
Upside−2.6%
Quality62/100

A solid business, currently priced close to our fair value of ¥32.55.

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Strengths

Highly profitable · 30.6% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Wide moat 65/100

Risks

!Weak Growth (revenue 5y +20.6 %/yr)

For context

·3.44% dividend yield
Evidence: High Range ¥24.46 – ¥42.29

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price +8.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (4 years)

¥42.68 ¥10.41 Fair Value ¥32.55 Apr 2022 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

52‑month range ¥10.41 – ¥42.68 · fair‑value band ¥24.46 – ¥42.29 · the ¥33.41 price screens above the ¥32.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

CNOOC Limited (600938) currently trades at ¥33.41, while our model-based Fair Value estimate is ¥32.55, implying the stock looks roughly 2.6% fairly valued today. The Quality Score stands at 62/100 (solid quality), in the Energy sector. Bull case: the DCF Models group reads highest at a median of ¥38.69 per share, and 11 of the 26 models we run sit above the ¥33.41 price. Bear case: the Asset-Based group reads lowest at ¥11.32, and 15 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, CNOOC Limited generated revenue of 407B CNY at a net margin of 30.6%. Revenue grew 8.6% year over year. It earns a return on equity of 15.4%. The balance sheet holds a net cash position of 8.9B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥24.46 (bear case) to ¥42.29 (bull case); at ¥33.41, 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 25% below its 52-week high and 36% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at −35% fair-value upside, at −3%, 600938 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.9609 per share, which is 3.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence ¥26.15 ¥43.81 ¥73.45 78
Growth DCF ¥26.46 ¥44.02 ¥73.90 76
Owner Earnings ¥24.61 ¥41.21 ¥69.07 74
All 26 models by family
DCF Models
FCF DCF best evidence ¥26.15 ¥43.81 ¥73.45 78
Owner Earnings ¥24.61 ¥41.21 ¥69.07 74
5Y Revenue Exit ¥13.35 ¥18.85 ¥25.62 73
5Y EBITDA Exit ¥23.58 ¥38.69 ¥56.69 74
5Y P/E Exit ¥25.23 ¥41.89 ¥59.90 70
10Y Revenue Exit ¥17.24 ¥23.58 ¥31.87 67
10Y EBITDA Exit ¥24.24 ¥37.96 ¥56.97 68
10Y P/E Exit ¥25.33 ¥40.27 ¥59.56 63
Earnings-Based
Graham-Dodd ¥17.47 ¥63.99 ¥86.38 64
Lynch FV ¥15.26 ¥21.81 ¥28.35 61
PEG = 1.0 ¥15.26 ¥21.81 ¥28.35 57
EPV ¥27.29 ¥32.03 ¥36.25 74
Dividend Discount
Gordon GGM ¥12.23 ¥26.70 ¥44.92 65
DDM Multi-Stage ¥12.23 ¥21.87 ¥27.83 66
Multiples
P/E Multiple ¥26.97 ¥35.96 ¥44.95 63
P/S Multiple ¥7.50 ¥10.00 ¥12.50 58
P/B Multiple ¥22.80 ¥30.40 ¥38.00 55
EV/EBIT ¥28.07 ¥37.28 ¥46.50 66
EV/EBITDA ¥24.69 ¥32.78 ¥40.87 67
EV/Revenue ¥7.42 ¥10.42 ¥13.42 54
Asset-Based
NCAV (Graham) ¥8.44 ¥11.32 ¥16.89 54
Growth DCF
Growth DCF ¥26.46 ¥44.02 ¥73.90 76
Rev-Margin DCF ¥13.35 ¥19.12 ¥26.16 73
Economic Profit
Residual Income ¥17.69 ¥22.60 ¥57.91 68
ROIC Compounder ¥30.00 ¥39.95 ¥53.04 72
Growth Earnings
Growth-Adj P/E ¥22.77 ¥32.53 ¥42.29 67

Widest divergence: DCF Models (¥38.69) versus Asset-Based (¥11.32). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 13.7 as of Jun 7, 2026
P/S ratio 4.22 P/E × margin
EPS (TTM) ¥2.57 price ÷ EPS = P/E 13.7
Dividend yield 3.4% payout 44.7%
Net margin 30.8% FY2025
Return on equity 15.4% TTM
More key figures
Profitability
Return on assets (EBIT) 16.6% avg 5y
Operating margin 44.7% TTM
Growth
Revenue (TTM) 407B CNY TTM
Revenue growth (YoY) +8.6% 3y avg −2.1%
EPS growth (YoY) +6.5%
Balance sheet & cash flow
Free cash flow 97.5B CNY FY2025
Net cash 8.9B CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 63 · Market factors (momentum, volatility) 55

Profitability 56
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 79
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

CNOOC Limited, an investment holding company, engages in the exploration, development, production, and sale of crude oil and natural gas in worldwide. The company produces offshore crude oil and natural gas primarily in Bohai Sea, the Western South China Sea, the Eastern South China Sea, and the East China Sea in China.

Full company description

CNOOC Limited, an investment holding company, engages in the exploration, development, production, and sale of crude oil and natural gas in worldwide. The company produces offshore crude oil and natural gas primarily in Bohai Sea, the Western South China Sea, the Eastern South China Sea, and the East China Sea in China. It also holds interests in various oil and gas assets in Asia, Africa, North America, South America, Oceania, and Europe. In addition, the company is involved in the sales and trading of petroleum and natural gas; oil sands exploration, development, and production; and exploration, development, and production of unconventional natural gas resources in onshore China, as well as in shale oil and gas activities. The company was incorporated in 1999 and is based in Hong Kong. CNOOC Limited operates as a subsidiary of CNOOC (BVI) LTD.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CNOOC Limited reported revenue of 396B CNY in FY2025 versus 246B CNY in FY2021, a compound +12.6%/yr. Reported net income was 122B CNY in FY2025, compounding +14.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
396B CNY
Latest YoY
−5.8%
Avg. revenue 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.
−2.1%
Avg. revenue 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.
+20.6%
Avg. revenue 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.
+14.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+16.8% (13.4 + 3.4)
Revenue +12.6%/yr
FY21 246B CNY
FY22 422B CNY
FY23 417B CNY
FY24 421B CNY
FY25 396B CNY
Net income +14.8%/yr
FY21 70.3B CNY
FY22 142B CNY
FY23 124B CNY
FY24 138B CNY
FY25 122B CNY
Character of growth · EPS growth decomposed (2014-2025) +12.2 % p.a.
Revenue per share +6.0 %

of which total revenue +6.7 % · buybacks/dilution −0.6 %

EBIT margin +7.2 %
Tax rate −1.2 %
Residual (interest, one-offs) +0.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "CNOOC Limited Fair Value". https://www.fairvalue-calculator.com/stock/600938

Recent news

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

Peer Group

Oil & Gas E&P · 296 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +6% · Above median
Return on equity (TTM) 15% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 31% · Top 25%
Operating margin (TTM) 45% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 3.4% · Below median
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Oil & Gas E&P median · lower = cheaper

P/E (TTM) 13.7× · Cheaper than median
P/B 1.72× · Pricier than median
P/S (TTM) 3.38× · Pricier than median
P/FCF 2.1× · Cheaper than 75% of peers
EV/EBITDA 5.5× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE41 · sector 9
FUTURE43 · sector 7
PAST61 · sector 9
HEALTH96 · sector 87
DIVIDEND69 · sector 70

Values & ESG

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

Oil & gas

Similar stocks

10 more Oil & Gas E&P stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
ConocoPhillips explores for, COP $130.35 $90.15 −31%
Canadian Natural Resources Limited CNQ C$69.03 C$44.78 −35%
EOG Resources, Inc EOG $143.35 $132.20 −8%
Occidental Petroleum Corporation OXY $59.17 $30.06 −49%
Diamondback Energy, Inc FANG $200.52 $105.24 −48%
Devon Energy Corporation DVN $47.35 $27.06 −43%
Woodside Energy Group WDS A$32.55 A$20.71 −36%
EQT Corporation EQT $54.57 $42.85 −21%
Texas Pacific Land Corporation TPL $366.50 $77.26 −79%
Expand Energy Corporation EXE $98.16 $106.45 +8%

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Frequently asked questions

Is CNOOC Limited (600938) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥32.55 versus a price of ¥33.41, about −3% upside (fairly valued).
What is the fair value of 600938?
Our model-based fair value for CNOOC Limited is ¥32.55 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥33.41.
What is the quality score of 600938?
CNOOC Limited has a Quality Score of 62/100. 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 CNOOC Limited (600938)?
CNOOC Limited reported trailing-twelve-month revenue of about 407B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600938?
The net profit margin of CNOOC Limited is about 30.6%, meaning it keeps roughly 30.6% of revenue as net income. Based on the latest reported figures.
Does CNOOC Limited pay a dividend?
CNOOC Limited currently shows a dividend yield of about 3.44% relative to its recent price (as of Aug 13, 2026).
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