Petroleo Brasileiro SA Petrobras ADR (PBR) is undervalued and Shell Plc ADR (SHEL) is fairly valued.
Against our estimates of intrinsic value, PBR trades at the wider discount: a margin of safety of +62%, against +3% for SHEL.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $67.32; the price of $25.56 is 62% below that value, and 81% of that value comes from beyond year five.
Leak Score 79/100 on 12 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $108.45; the price of $104.82 is 3% below that value, and 80% of that value comes from beyond year five.
Leak Score 67/100 on 10 of 12 signals
| Metric | PBR | SHEL |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $25.56 | $104.82 |
| Intrinsic value | $67.32 | $108.45 |
| Margin of safety | +62% | +3% |
| Leak Score | 79/100 (12/12) | 67/100 (10/12) |
| Market cap | $95.1B | $298.5B |
| Revenue growth, 5 years | 11.0% | 8.5% |
| Operating margin | 34.8% | 13.7% |
| Net margin | 24.5% | 8.8% |
| Return on equity | 30.7% | 14.3% |
| Debt to equity | 0.76 | 0.40 |
| P/E | 6.5x | 11.6x |
| Forward P/E | 6.4x | 9.9x |
| P/B | 1.8x | 1.6x |
| Dividend yield | 6.9% | 3.0% |