Using the industry peer median P/E multiple (trailing + forward), ONEOK, Inc. (OKE) has a fair value of $165.05 based on 3 comparable companies in the Oil & Gas Midstream industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| ONEOK, Inc.OKE | 59,181 | 17.3x | 16.7x |
| Occidental Petroleum CorporationOXY | 63,338 | 39.9x | 30.7x |
| Diamondback Energy, Inc.FANG | 57,076 | 35.3x | 16.3x |
| Targa Resources Corp.TRGP | 53,910 | 29.4x | 24.9x |
| Industry Median | 35.3x | 24.9x | |
| (*) Profit after tax | 3,395 | 3,547 | |
| Equity Value | 119,886 | 88,475 | |
| (/) Outstanding shares | 631 | 631 | |
| Fair Price | $190 | $140 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.