Multipliers:

Multipliers

NRL

Industry

P/E multiplier
P/S multiplier
P/BV of equity
multiplier
P/BV of assets
multiplier
P/OCF multiplier

17.92
0.09
0.65 gurufocus

30.83
3.07
2.78

Peer (Attock
Refinery Limited)
6.84
0.13
0.53

8.92

15.69

28.97

Comparison with Industry and Peer Companies:

Since NRL has been operating in an oligopolistic industry, comparison is same for both the
industry and its peers. While doing the comparison, it was found out that all of the multipliers of
NRL are lesser as compared to that of the average industry multipliers. Thus, the average
industry multipliers in oil and gas industry is higher than NRL. This means that NRL is seriously
undervalued.
Attock Refinery Limited has been decided to be a peer company of NRL. According to the
valuation ratios, NRL has been undervalued as far as the P/S and P/OCF multiples are concerned.
But, as for P/E and P/BV of equity is concerned, NRL is overvalued.
Fundamental or Intrinsic P/E Ratio:
Throughout a period of 5 years, NRL has been paying dividends except in year 2014 where the
dividend payout ratio went to 0. The dividend payout ratio in 2013 was 42.17. One of the reasons
for 0 dividend payout ratio in 2014 can be attributed to the undertaking of expansionary projects.