<div id="readability-page-1"><div><ul> <li>If you are wondering whether PetroChina's current share price reflects its true worth, you are not alone. The stock's recent track record has many investors asking if there is still value on the table.</li> <li>Over the past week the share price return was 9.2%, with 11.0% over the last 30 days, 10.2% year to date, 68.0% over 1 year and a very large 3 year and 5 year return that is close to 7x.</li> <li>Recent coverage has highlighted PetroChina's role within the wider energy sector and how shifts in investor attention toward large integrated producers have influenced trading activity. At the same time, updates around global energy demand and sector sentiment have given investors extra context for these moves, even without company specific earnings news in focus.</li> <li>On our valuation checks, PetroChina currently has a value score of 3 out of 6, which suggests that some measures point to the shares being undervalued while others are more balanced. Next we will walk through the main valuation approaches before coming back to an even more useful way to think about what the market is pricing in.</li> </ul> PetroChina delivered 68.0% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry. <h3>Approach 1: PetroChina Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow model estimates what a company might be worth by projecting its future cash flows and then discounting those amounts back to today to reflect time and risk. For PetroChina, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow stands at CN¥144.6b. Analyst inputs and subsequent extrapolations suggest free cash flow of CN¥135.999b in 2026, easing to CN¥86.819b by 2028. Further out, Simply Wall St extrapolates cash flows through to 2035, with discounted values gradually tapering as they are brought back to today’s terms. When all these projected and discounted cash flows are added together, the DCF model arrives at an estimated intrinsic value of HK$8.37 per share. Compared with the current share price, this implies the stock is 12.2% overvalued on this measure. In short, the DCF view suggests PetroChina’s cash flow outlook is already more than fully reflected in the current price. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests PetroChina may be overvalued by 12.2%. Discover 868 undervalued stocks or create your own screener to find better value opportunities. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/dcf"/><figcaption>857 Discounted Cash Flow as at Jan 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PetroChina. <h3>Approach 2: PetroChina Price vs Earnings</h3> For a profitable company like PetroChina, the P/E ratio is a straightforward way to see how much investors are paying for each unit of earnings. It links directly to what the business is currently generating, which many investors find easier to relate to than cash flow models. In general, higher growth expectations and lower perceived risk tend to support a higher P/E that investors are willing to pay, while lower growth and higher risk usually point to a lower P/E being considered normal. That “normal” range can vary a lot between sectors, so context matters. PetroChina currently trades on a P/E of 9.67x. That compares with an Oil and Gas industry average of about 10.34x and a peer group average of 11.67x. Simply Wall St’s Fair Ratio for PetroChina is 12.38x, which is a proprietary estimate of what the P/E might be given factors like its earnings profile, industry, profit margins, market cap and risk characteristics. The Fair Ratio can be more informative than a simple peer or industry comparison because it is tailored to PetroChina’s specific fundamentals rather than broad group averages. With the Fair Ratio above the current 9.67x, this framework suggests PetroChina’s shares may be trading below the level implied by those fundamentals. Result: UNDERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/pe-multiple-vs-industry"/><figcaption>SEHK:857 P/E Ratio as at Jan 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1417 companies where insiders are betting big on explosive growth. <h3>Upgrade Your Decision Making: Choose your PetroChina Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is simply your story for a company, where you spell out what you think is reasonable for future revenue, earnings and margins, then connect that to a fair value that makes sense to you. On Simply Wall St, Narratives live on the Community page and are used by millions of investors as an easy tool that links a company’s story to a financial forecast, then straight through to a fair value that you can compare with today’s share price to help decide whether you want to buy, hold or sell. Because Narratives on the platform update when new information like company news or earnings is added, your view of PetroChina is not fixed. Different investors can sit side by side. For example, one Narrative might assume relatively conservative revenue growth and a lower fair value for PetroChina, while another might assume stronger revenue growth and higher margins that support a higher fair value, even though both investors are looking at the same stock price. Do you think there's more to the story for PetroChina? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9a36c51e-6437-4139-8bc7-1e23d75d65ba/chart/quote-price"/><figcaption>SEHK:857 1-Year Stock Price Chart</figcaption></figure> 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.</div></div>

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PetroChina's share price has seen significant gains, with a 68.0% return over the past year. However, a Discounted Cash Flow (DCF) analysis suggests the stock is currently overvalued by 12.2%, estimating an intrinsic value of HK$8.37 per share. In contrast, a Price-to-Earnings (P/E) analysis indicates the stock may be undervalued, trading at a P/E of 9.67x compared to the industry average of 10.34x. Investors are encouraged to consider both valuation approaches and the company's narrative for a comprehensive understanding of its market position.

Is PetroChina (SEHK:857) Pricing In Its 7x Multi‑Year Rally Already?