Vår Energi (OB:VAR) Reported Higher Volumes, Is The Stock Still Undervalued?
Vår Energi (OB:VAR) reported new operating results for the second quarter and first half of 2026, with production and sales volumes higher than the same periods a year earlier, drawing fresh attention to the stock.
See our latest analysis for Vår Energi.
At a share price of NOK44.4, Vår Energi has enjoyed firm momentum, with a year to date share price return of 32.93% and a 1 year total shareholder return of 48.02%, pointing to growing investor interest following recent production and sales updates.
If the recent move in Vår Energi has you thinking about other opportunities in energy related infrastructure, it could be worth checking out 33 power grid technology and infrastructure stocks
After a 32.93% gain this year and stronger reported production and sales, some investors may feel Vår Energi has already done the hard work. Others see room left in the NOK44.4 price. How does the valuation stack up?
Most Popular Narrative: 9.5% Undervalued
Against the last close of NOK44.4, the most followed narrative pegs Vår Energi's fair value at about NOK49, using a discounted cash flow view anchored on its long project pipeline and profit expectations.
Large, flexible project pipeline (30+ early phase projects, over 3 billion barrels of resource potential) and a leading exploration track record position the company for organic, long-duration growth, helping sustain and increase future revenue.
Analysts behind this narrative are not just looking at higher output. They are incorporating steadier margins, slower top line expansion and a specific profit multiple to get to that fair value. The tension between cautious revenue assumptions and firm earnings expectations is where the story becomes more notable.
Result: Fair Value of NOK49.03 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Vår Energi narrative also leans on assumptions that could be tested by faster, policy-driven declines in oil demand or by rising decommissioning and regulatory costs.
Find out about the key risks to this Vår Energi narrative.
Another View: Vår Energi Through a P/E Lens
While the most followed Vår Energi narrative leans on a DCF style fair value of about NOK49, the current P/E of 16.4x looks high compared with the company’s own fair ratio of 11.5x and the European Oil and Gas average of 15.4x. This suggests there may be less room for upside if sentiment cools.
That gap on earnings multiples raises a simple question for you: is the market paying up for quality here, or stretching expectations on what Vår Energi can deliver over time?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment around Vår Energi split between potential risks and appealing rewards, it makes sense to move quickly and test the data yourself using 2 key rewards and 2 important warning signs
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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.
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