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Oil & Natural Gas Corporation Limited (ONGC) Fair Value & Analysis

Energy · IN · Market cap ₹3.1T (≈ $32.7B) · ISIN INE213A01029

What is Oil & Natural Gas Corporation Limited really worth?

ON Oil & Natural Gas Corporation Limited ONGC · NSE
Price₹234.65
Fair Value₹344.31
Upside+46.7%
Quality60/100

A solid business, trading 32% below our fair value of ₹344.31.

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Strengths

Low debt · generates free cash flow
Ranks above peers (12/14)

Risks

!Mixed Growth (revenue 5y +16.9 %/yr)
!Thin margins · 6.3% net margin
!Moderate moat 46/100
!Weak on future: 10 out of 100

For context

·5.75% dividend yield
Evidence: High Range ₹251.79 – ₹430.39

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Fair value updated Aug 27, 2026, revised from ₹472.78 to ₹344.31 (−27.2%) since Aug 13, 2026. Share price −2.3% 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 is below even our cautious bear case (₹251.79). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

₹307.87 ₹80.50 Fair Value ₹344.31 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹80.50 – ₹307.87 · fair‑value band ₹251.79 – ₹430.39 · the ₹234.65 price screens below the ₹344.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Oil & Natural Gas Corporation Limited (ONGC) currently trades at ₹234.65, while our model-based Fair Value estimate is ₹344.31, implying the stock looks roughly 31.8% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Energy sector. Bull case: the Growth DCF group reads highest at a median of ₹881.18 per share, and 24 of the 26 models we run sit above the ₹234.65 price. Bear case: the Asset-Based group reads lowest at ₹198.00, and 2 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Oil & Natural Gas Corporation Limited generated revenue of ₹6.6T at a net margin of 6.3%. Revenue grew 1.9% year over year. It earns a return on equity of 12.7%. Net debt stands at ₹1.4T. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹251.79 (bear case) to ₹430.39 (bull case); at ₹234.65, the current price sits below 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 24% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at −17% fair-value upside, at 47%, ONGC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹8.44 per share, which is 2.5 % 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 ₹747.03 ₹1,477 ₹2,841 76
5Y EBITDA Exit ₹455.30 ₹794.56 ₹1,216 74
EPV ₹412.66 ₹494.12 ₹566.54 74
All 26 models by family
DCF Models
FCF DCF best evidence ₹747.03 ₹1,477 ₹2,841 76
Owner Earnings ₹368.39 ₹751.17 ₹1,466 72
5Y Revenue Exit ₹499.91 ₹888.30 ₹1,414 71
5Y EBITDA Exit ₹455.30 ₹794.56 ₹1,216 74
5Y P/E Exit ₹416.55 ₹713.10 ₹1,049 70
10Y Revenue Exit ₹557.20 ₹963.14 ₹1,587 65
10Y EBITDA Exit ₹542.93 ₹892.08 ₹1,414 67
10Y P/E Exit ₹516.44 ₹830.33 ₹1,268 63
Earnings-Based
Graham-Dodd ₹223.91 ₹1,108 ₹1,527 64
Lynch FV ₹298.49 ₹426.42 ₹554.34 61
PEG = 1.0 ₹298.49 ₹426.42 ₹554.34 57
EPV ₹412.66 ₹494.12 ₹566.54 74
Dividend Discount
Gordon GGM ₹129.83 ₹283.45 ₹476.91 65
DDM Multi-Stage ₹129.83 ₹232.19 ₹295.40 66
Multiples
P/E Multiple ₹345.74 ₹460.99 ₹576.24 63
P/S Multiple ₹419.83 ₹559.78 ₹699.72 58
P/B Multiple ₹398.95 ₹531.93 ₹664.91 55
EV/EBIT ₹403.54 ₹554.38 ₹705.23 66
EV/EBITDA ₹356.27 ₹491.36 ₹626.45 67
EV/Revenue ₹393.19 ₹582.70 ₹772.21 53
Asset-Based
NCAV (Graham) ₹147.76 ₹198.00 ₹295.52 54
Growth DCF
Growth DCF ₹739.63 ₹1,409 ₹2,640 74
Rev-Margin DCF ₹499.91 ₹881.18 ₹1,385 71
Economic Profit
Residual Income ₹272.30 ₹317.06 ₹603.08 73
ROIC Compounder ₹469.26 ₹686.93 ₹973.08 71
Growth Earnings
Growth-Adj P/E ₹377.42 ₹539.18 ₹700.93 67

Widest divergence: Growth DCF (₹881.18) versus Asset-Based (₹198.00). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 7.1
P/S ratio 0.45 P/E × margin
EPS (TTM) ₹32.93 price ÷ EPS = P/E 7.1
Dividend yield 5.8% payout 41.0%
Net margin 6.3% FY2026
Return on equity 12.7% TTM
More key figures
Profitability
Return on assets (EBIT) 15.0% avg 5y
Operating margin 9.2% TTM
Growth
Revenue (TTM) ₹6.6T TTM
Revenue growth (YoY) +1.9% 3y avg +1.6%
EPS growth (YoY) +47.8%
Balance sheet & cash flow
Free cash flow ₹716B FY2026
Net debt ₹1.4T FY2026 · ≈ 2.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 59 · Market factors (momentum, volatility) 49

Profitability 47
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 82
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

Oil and Natural Gas Corporation Limited, together with its subsidiaries, engages in the exploration, development, production, and distribution of crude oil, natural gas, and value-added products in India and internationally. It operates through Exploration and Production, Refining & Marketing, and Petrochemicals segments.

Full company description

Oil and Natural Gas Corporation Limited, together with its subsidiaries, engages in the exploration, development, production, and distribution of crude oil, natural gas, and value-added products in India and internationally. It operates through Exploration and Production, Refining & Marketing, and Petrochemicals segments. The company engages in the refining and marketing of petroleum products; liquefied natural gas supply; pipelines for transportation of petroleum products; SEZ development; helicopter services; and production of ethanol, sugar, petrochemicals, liquefied petroleum gas, naphtha, ethane, propane, butane, kerosene oil, low sulphur heavy stock, residual crude oil, mineral turpentine oil, aviation turbine fuel, and high speed diesel. It also generates wind power through a total installed capacity of 153.9 MW; and solar power through a total installed capacity of 39.96 MW. The company also exports its products. Oil and Natural Gas Corporation Limited was founded in 1955 and is based in New Delhi, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Oil & Natural Gas Corporation Limited reported revenue of ₹6.6T in FY2026 versus ₹4.9T in FY2022, a compound +7.8%/yr. Reported net income was ₹414B in FY2026, compounding −2.3%/yr from FY2022.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹6.6T
Latest YoY
−0.1%
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.
+1.6%
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.
+16.9%
Avg. revenue growth/yr (24Y) 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.
+15.1%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+26.3% (20.5 + 5.8)
Revenue +7.8%/yr
FY22 ₹4.9T
FY23 ₹6.3T
FY24 ₹6.0T
FY25 ₹6.6T
FY26 ₹6.6T
Net income −2.3%/yr
FY22 ₹455B
FY23 ₹367B
FY24 ₹491B
FY25 ₹362B
FY26 ₹414B
Character of growth · EPS growth decomposed (2015-2026) +9.8 % p.a.
Revenue per share +14.8 %

of which total revenue +14.5 % · buybacks/dilution +0.2 %

EBIT margin −7.3 %
Tax rate +1.0 %
Residual (interest, one-offs) +2.2 %

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). "Oil & Natural Gas Corporation Limited Fair Value". https://www.fairvalue-calculator.com/stock/ONGC

Earlier news

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

Peer Group

Oil & Gas Integrated · 53 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 60 · Above median
Fair Value upside +47% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 5% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 9% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 5.8% · Top 25%
Debt / equity 0.25× · Lower than median

Valuation Multiples vs Oil & Gas Integrated median · lower = cheaper

P/E (TTM) 7.1× · Cheaper than 75% of peers
P/B 0.83× · Cheaper than median
P/S (TTM) 0.47× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 3.3× · Cheaper than 75% of peers

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
VALUE96 · sector 5
FUTURE10 · sector 12
PAST51 · sector 43
HEALTH87 · sector 86
DIVIDEND100 · sector 74

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 Integrated stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Exxon Mobil Corporation XOM $156.44 $88.98 −43%
Chevron Corporation CVX $201.86 $90.66 −55%
PetroChina Company 601857 ¥11.23 ¥15.47 +38%
Shell plc SHELL €40.28 €39.46 −2%
TotalEnergies SE TOTB €75.55 €69.02 −9%
Petróleo Brasileiro S.A XPBRA €7.11 €2.03 −71%
China Petroleum & Chemical Corporation 600028 ¥5.52 ¥4.59 −17%
Equinor ASA EQNR kr 395.90 kr 338.01 −15%
Suncor Energy Inc SU C$94.21 C$59.11 −37%
Eni S.p.A E $55.12 $32.53 −41%

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Frequently asked questions

Is Oil & Natural Gas Corporation Limited (ONGC) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹344.31 versus a price of ₹234.65, about +47% upside (undervalued).
What is the fair value of ONGC?
Our model-based fair value for Oil & Natural Gas Corporation Limited is ₹344.31 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹234.65.
What is the quality score of ONGC?
Oil & Natural Gas Corporation Limited has a Quality Score of 60/100. 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 Oil & Natural Gas Corporation Limited (ONGC)?
Oil & Natural Gas Corporation Limited reported trailing-twelve-month revenue of about ₹6.6T (latest available figure, as of Aug 27, 2026).
What is the net profit margin of ONGC?
The net profit margin of Oil & Natural Gas Corporation Limited is about 6.3%, meaning it keeps roughly 6.3% of revenue as net income. Based on the latest reported figures.
Does Oil & Natural Gas Corporation Limited pay a dividend?
Oil & Natural Gas Corporation Limited currently shows a dividend yield of about 5.75% relative to its recent price (as of Aug 27, 2026).
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