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Petroleo Brasileiro S.A. (XPBRA) Fair Value & Analysis

Energy · ES · Market cap €99.4B · ISIN BRPETRACNPR6

What is Petroleo Brasileiro S.A. really worth?

PB Petroleo Brasileiro S.A. XPBRA · MC
Price€7.74
Fair Value€2.03
Upside−73.8%
Quality61/100

A solid business, but trading 281% above our fair value of €2.03.

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Strengths

Highly profitable · 21.6% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)
Wide moat 80/100

Risks

!Weak Growth (revenue 3y −10.5 %/yr)
!Weak on future: 2 out of 100
Evidence: High Range €1.49 – €2.92

Fair value as of: Aug 27, 2026

From 22 valuation models · updated 8 days ago

Fair value updated Aug 27, 2026, revised from €2.04 to €2.03 (−0.5%) since Aug 13, 2026. Share price +6.8% 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 above even our optimistic bull case (€2.92). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (€1.49 to €2.92) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€8.06 €0.1137 Fair Value €2.03 Apr 2020 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 €0.1137 – €8.06 · fair‑value band €1.49 – €2.92 · the €7.74 price screens above the €2.03 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

Petroleo Brasileiro S.A. (XPBRA) currently trades at €7.74, while our model-based Fair Value estimate is €2.03, implying the stock looks roughly 281.1% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Energy sector. Bull case: the Growth Earnings group reads highest at a median of €16.44 per share, and 20 of the 22 models we run sit above the €7.74 price. Bear case: the Asset-Based group reads lowest at €3.94, and 2 of the 22 models stay below the price. Evidence for this calculation is high.

Revenue grew 0.4% year over year. It earns a return on equity of 25.6%. Net debt stands at €20.1B. The stock trades on a trailing P/E of 5.1 (as of Jul 16, 2026). Fundamentals as of Aug 27, 2026

Our scenario range runs from €1.49 (bear case) to €2.92 (bull case); at €7.74, the current price sits above 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 4% below its 52-week high and 80% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at −17% fair-value upside, at −74%, XPBRA screens richer than that median.

Fair Value models

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 €11.07 €15.97 €25.03 75
Growth DCF €11.65 €16.40 €24.53 74
Owner Earnings €10.12 €14.64 €23.00 72
All 22 models by family
DCF Models
FCF DCF €11.07 €15.97 €25.03 75
Owner Earnings €10.12 €14.64 €23.00 72
5Y Revenue Exit €6.69 €9.42 €13.36 69
5Y EBITDA Exit €11.29 €17.39 €25.46 71
5Y P/E Exit €11.83 €18.31 €26.06 67
10Y Revenue Exit €8.16 €10.35 €12.60 64
10Y EBITDA Exit €11.11 €15.28 €19.71 66
10Y P/E Exit €11.43 €15.85 €20.06 61
Earnings-Based
Graham-Dodd €10.36 €12.66 €14.24 62
EPV €14.82 €17.52 €19.88 70
Multiples
P/E Multiple €16.00 €21.33 €26.66 61
P/S Multiple €6.23 €8.30 €10.38 56
P/B Multiple €7.95 €10.60 €13.25 53
EV/EBIT €14.77 €20.15 €25.54 64
EV/EBITDA €13.59 €18.59 €23.58 66
EV/Revenue €4.43 €6.92 €9.41 52
Asset-Based
NCAV (Graham) €2.94 €3.94 €5.89 52
Growth DCF
Growth DCF €11.65 €16.40 €24.53 74
Rev-Margin DCF €6.69 €9.71 €13.52 69
Economic Profit
Residual Income €10.12 €13.73 €77.69 60
ROIC Compounder €14.82 €18.21 €21.62 68
Growth Earnings
Growth-Adj P/E €11.51 €16.44 €21.37 63

Widest divergence: Growth Earnings (€16.44) versus Asset-Based (€3.94). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 5.1 as of Jul 16, 2026
P/S ratio 1.13 P/E × margin
EPS (TTM) €1.38 price ÷ EPS = P/E 5.1
Net margin 22.0% FY2025
Return on equity 25.6% TTM
Return on assets (EBIT) 18.2% avg 5y
More key figures
Profitability
Operating margin 32.0% TTM
Growth
Revenue growth (YoY) +0.4% 3y avg −10.5%
EPS growth (YoY) −7.2%
Balance sheet & cash flow
Free cash flow €16.5B FY2025
Net debt €20.1B FY2025 · ≈ 1.2 yrs of FCF

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 58 · Market factors (momentum, volatility) 80

Profitability 59
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 84
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

Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil, China, the United States, the Americas, Asia, Europe, Singapore, and internationally. It operates through three segments: Exploration and Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies.

Full company description

Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil, China, the United States, the Americas, Asia, Europe, Singapore, and internationally. It operates through three segments: Exploration and Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. Its Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and export of crude oil; trading of oil products; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Low Carbon Energies segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of liquefied natural gas; generation of electricity through thermoelectric power plants; renewable energy business; low carbon business; and natural gas processing business, as well as production of biodiesel and its co-products. It also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, the company engages in research, development, production, transportation, distribution, and trading of energy. Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio De Janeiro, Brazil.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Petroleo Brasileiro S.A. reported revenue of R$89.2B in FY2025 versus R$84.0B in FY2021, a compound +1.5%/yr. Reported net income was R$19.6B in FY2025, compounding −0.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€89.2B
Latest YoY
−2.4%
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.
−10.5%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in BRL: 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.
+0.0% (0.0 + 0.0)
Revenue +1.5%/yr
FY21 R$84.0B
FY22 R$124B
FY23 R$102B
FY24 R$91.4B
FY25 R$89.2B
Net income −0.3%/yr
FY21 R$19.9B
FY22 R$36.6B
FY23 R$24.9B
FY24 R$7.5B
FY25 R$19.6B

XPBRA screens 281% overvalued. Compare with Exxon Mobil Corporation →

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Cite: Fair Value Calculator (2026). "Petroleo Brasileiro S.A. Fair Value". https://www.fairvalue-calculator.com/stock/XPBRA

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 61 · Above median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 26% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 32% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 42.1% · Top 25%
Debt / equity 0.32× · Higher than median

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

P/E (TTM) 5.1× · Cheaper than 75% of peers
P/B 1.52× · Pricier than median
P/S (TTM) 0.23× · Cheaper than 75% of peers
P/FCF 7.0× · Pricier than median
EV/EBITDA 0.7× · Cheaper than 75% of peers
PEG 4.05× · Pricier 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
VALUE0 · sector 5
FUTURE2 · sector 12
PAST100 · sector 43
HEALTH84 · sector 86
DIVIDEND100 · sector 74

VALUE 0: the price sits above our fair-value range.

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%
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%
Imperial Oil Limited IMO $130.51 $94.61 −28%

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Frequently asked questions

Is Petroleo Brasileiro S.A. (XPBRA) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of €2.03 versus a price of €7.74, about −74% upside (overvalued).
What is the fair value of XPBRA?
Our model-based fair value for Petroleo Brasileiro S.A. is €2.03 (as of Aug 27, 2026), built from audited fundamentals. The current price: €7.74.
What is the quality score of XPBRA?
Petroleo Brasileiro S.A. has a Quality Score of 61/100. 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 net profit margin of XPBRA?
The net profit margin of Petroleo Brasileiro S.A. is about 21.6%, meaning it keeps roughly 21.6% of revenue as net income. Based on the latest reported figures.
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