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BPBP p.l.c.
$43.10$112.5B
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  4. Financial Ratios

BP p.l.c. (BP) Financial Ratios

Latest Ratios: P/E Ratio 2112.7x · EV/EBITDA 4.8x · ROE 0.1%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

BP Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$112.5B$92.1B$82.9B$104.7B$110.5B$89.9B$69.2B$128.3B$127.0B$138.8B$117.5B
Enterprise Value$160.3B$139.8B$120.0B$140.1B$142.7B$133.8B$121.9B$185.0B$170.4B$176.5B$152.3B
P/E Ratio →2112.751702.45211.146.87—11.89—31.9813.5440.811038.33
P/S Ratio0.590.490.440.500.460.570.650.810.430.580.64
P/B Ratio1.541.241.061.221.330.990.811.271.251.381.21
P/FCF9.968.156.905.903.837.07—12.4020.6058.60—
P/OCF4.583.753.043.272.703.815.694.985.557.3310.99

P/E links to full P/E history page with 30-year chart

BP EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.740.630.670.590.851.151.160.570.730.83
EV / EBITDA4.774.163.972.982.565.258.515.445.187.0313.40
EV / EBIT10.3610.8410.585.087.927.54—15.898.8520.44—
EV / FCF—12.3810.007.894.9410.51—17.8727.6374.49—

BP Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin17.7%17.7%16.0%22.9%22.8%14.5%9.6%17.3%9.7%7.9%3.6%
Operating Margin8.2%8.2%6.8%14.8%17.2%6.8%-0.5%10.2%5.5%3.3%-2.4%
Net Profit Margin0.0%0.0%0.2%7.3%-1.0%4.8%-19.2%2.5%3.1%1.4%0.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE0.1%0.1%0.5%18.1%-2.9%8.6%-21.8%4.0%9.3%3.4%0.1%
ROA0.0%0.0%0.1%5.4%-0.9%2.7%-7.2%1.4%3.4%1.3%0.0%
ROIC9.8%9.8%8.2%19.7%24.9%5.9%-0.3%8.0%8.7%4.4%-2.6%
ROCE7.8%7.8%6.5%16.2%20.9%5.1%-0.3%7.4%7.7%3.8%-2.1%

BP Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.141.140.910.740.670.770.960.770.650.630.60
Debt / EBITDA2.512.512.371.341.002.745.722.282.002.525.13
Net Debt / Equity—0.640.470.410.390.480.620.560.430.370.36
Net Debt / EBITDA1.421.421.230.750.581.723.681.671.321.503.06
Debt / FCF—4.223.101.991.113.45—5.477.0315.89—
Interest Coverage2.502.502.497.216.877.05-10.164.827.624.16-0.37

BP Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.261.261.251.211.091.151.221.121.051.161.16
Quick Ratio0.980.980.970.940.800.860.940.830.780.860.86
Cash Ratio0.460.460.420.330.240.330.490.280.330.400.40
Asset Turnover—0.680.670.750.840.550.400.541.060.870.70
Inventory Turnover6.936.936.847.106.635.695.686.3115.0011.6410.00
Days Sales Outstanding—53.2550.5252.6950.3361.0061.4954.8524.5029.6028.82

BP Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield4.4%5.5%6.0%4.6%3.9%4.8%9.2%5.4%5.3%4.4%3.9%
Payout Ratio9219.7%9219.7%1312.9%31.6%—56.9%—172.5%71.4%181.5%4008.7%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield0.0%0.1%0.5%14.5%—8.4%—3.1%7.4%2.5%0.1%
FCF Yield10.0%12.3%14.5%17.0%26.1%14.2%—8.1%4.9%1.7%—
Buyback Yield4.0%4.9%8.6%7.6%9.0%3.5%1.1%1.2%0.3%0.2%0.0%
Total Shareholder Yield8.4%10.4%14.6%12.2%13.0%8.3%10.3%6.6%5.6%4.7%3.9%
Shares Outstanding—$2.7B$2.8B$3.0B$3.2B$3.4B$3.4B$3.4B$3.4B$3.3B$3.1B

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Earnings quality obscured by non-cash charges

Deep Value Discount to US Peers

BP's forward P/E of 7.13 and EV/EBITDA of 3.80 represent a significant discount to US supermajors like ExxonMobil (24.50 P/E) and Chevron (31.94 P/E), suggesting the market is pricing in a permanent transition discount or structural earnings risk.

The valuation gap is stark when compared to European peers like Shell (15.47 P/E) and TotalEnergies (15.61 P/E), indicating BP is the cheapest major on a forward basis. This discount appears to reflect skepticism about the sustainability of its recent margin recovery and the opacity of its trading and low-carbon segments. The 4.4% dividend yield, the highest among the peer group, may be attracting income-focused investors but also signals that the market does not expect significant capital appreciation.

Margin Recovery Masks Earnings Volatility

Despite a gross margin recovery to 27.6% in 2026Q2, the net margin remains volatile and was negative in two of the last six quarters, indicating that non-operational items continue to dominate the bottom line.

The operating margin of 12.8% in the latest quarter is a significant improvement from the 3.3% low in 2024Q4, yet it remains below the 15.2% achieved in the prior quarter despite higher revenue. This pattern suggests that cost of goods sold, driven by volatile crude prices and refining inputs, is the primary margin driver, not operational efficiency. The persistent gap between operating and net margins points to substantial non-cash charges, likely impairments or inventory adjustments, which obscure the true earning power of the core business.

ROIC Recovery Lags Peer Group

BP's ROIC of 5.9% in 2026Q2, while improved from a low of 1.0% in 2024Q4, remains well below the 8-10% returns generated by peers like ExxonMobil (8.6%) and TotalEnergies (9.9%).

The ROIC trend shows a cyclical recovery rather than a structural improvement in capital efficiency. The ROE of 5.1% is similarly depressed compared to Shell's 14.6% and TotalEnergies' 14.5%, indicating that BP is not generating adequate returns on the capital invested by shareholders. This underperformance suggests that the company's asset base, particularly in the transition to lower-carbon energy, is not yet generating returns commensurate with its cost of capital.

Working Capital Swings Dominate Cash Flow

The cash conversion cycle has been highly erratic, swinging from -24 days to -3 days over the last ten quarters, driven primarily by volatile changes in days payable outstanding (DPO) which range from 107 to 141 days.

The negative CCC indicates BP effectively uses supplier financing to fund operations, a common trait in the industry. However, the extreme volatility in DPO suggests inconsistent payment terms or timing, which creates significant quarterly cash flow noise. Days inventory outstanding (DIO) has remained relatively stable between 51-67 days, indicating that inventory management is not the primary source of working capital instability.

Leverage Creep Amid Transition Spending

The debt-to-equity ratio has risen from 0.75 in 2024Q1 to 0.95 in 2026Q2, while the D/EBITDA ratio has improved from 12.14 to 5.55, suggesting that earnings growth is currently outpacing debt accumulation.

The interest coverage ratio of 7.66x in 2026Q2 is comfortable and has improved significantly from the negative reading in 2025Q4, indicating that debt service is not an immediate concern. However, the rising D/E ratio in the context of a capital-intensive energy transition warrants monitoring, as future low-carbon investments may require additional leverage. The substantial cash position of $37.2B provides a significant buffer against refinancing risk.

The Misleading Net Margin

The reported net margin of 0.03% is the single most misapplied ratio for BP, as it is distorted by non-cash inventory holding gains/losses and impairments that do not reflect operational cash generation.

Analysts should focus on the underlying replacement cost (RC) profit and operating cash flow, which consistently exceed net income. The OCF/NI ratio of 2.78x in 2026Q2 demonstrates that the business generates substantial cash despite reporting minimal or negative net income. Using net margin to value BP leads to incorrect conclusions about its profitability and valuation, as it captures accounting volatility rather than the economic earnings from its integrated operations.

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BP — Frequently Asked Questions

Quick answers to the most common questions about buying BP stock.

What is BP p.l.c.'s P/E ratio?

BP p.l.c.'s current P/E ratio is 2112.7x. The historical average is 20.2x. This places it at the 100th percentile of its historical range.

What is BP p.l.c.'s EV/EBITDA?

BP p.l.c.'s current EV/EBITDA is 4.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.8x.

What is BP p.l.c.'s ROE?

BP p.l.c.'s return on equity (ROE) is 0.1%. The historical average is 10.9%.

Is BP stock overvalued?

Based on historical data, BP p.l.c. is trading at a P/E of 2112.7x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is BP p.l.c.'s dividend yield?

BP p.l.c.'s current dividend yield is 4.44% with a payout ratio of 9219.7%.

What are BP p.l.c.'s profit margins?

BP p.l.c. has 17.7% gross margin and 8.2% operating margin.

How much debt does BP p.l.c. have?

BP p.l.c.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.