Shell (LSE:SHEL): Exploring Its Valuation as Shares Extend Steady 2024 Gains

Shell (LSE:SHEL) has delivered month-over-month gains of nearly 3%, continuing its upward trend established over the past 3 months. Investors have taken interest in the company’s steady net income growth and consistent returns.

See our latest analysis for Shell.

Shell’s share price has kept its positive momentum this year, supported by resilient earnings and sector tailwinds. With a 12.7% year-to-date gain and a robust 1-year total shareholder return of 15.8%, both short- and long-term signals remain encouraging for investors.

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But with Shell’s steady run this year and shares trading about 11% below consensus analyst price targets, the question remains: is the market underestimating its value, or has Shell’s future growth already been priced in?

Most Popular Narrative: 9.6% Undervalued

Shell's most widely followed narrative suggests its fair value sits above the current price. This indicates analysts see more upside ahead for shareholders if company goals are met. The gap between Shell’s recent closing price and its consensus target sets the stage for a deeper look at what’s driving this valuation.

Shell's focus on LNG expansion, operational efficiency, and high-grading its portfolio positions it for resilient revenue growth and stronger returns. Strong shareholder rewards and strategic flexibility help ensure stability and investor appeal despite market volatility and global energy shifts.

Read the complete narrative.

Curious which growth drivers and profit assumptions make this fair value possible? The narrative pins its hopes on a unique combination of long-term energy planning, relentless portfolio reshuffling, and ambitious return targets. Want to see the bold numbers that analysts say could turn today’s price gap into tomorrow’s gains? Start unraveling Shell’s next chapter in the full breakdown.

Result: Fair Value of £31.52 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weakness in Shell’s chemicals division and uncertainties around global energy transition policies could quickly shift the current valuation outlook.

Find out about the key risks to this Shell narrative.

Build Your Own Shell Narrative

If you see things differently or want to dig into the numbers your own way, you can shape your own Shell view in just a few minutes with Do it your way

A great starting point for your Shell research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SHEL.L.

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