Is Worley (ASX:WOR) Priced Fairly After Recent Contract Pipeline Updates?

Simply Wall St.05-28

Wondering if Worley at A$12.94 is offering fair value or if the price is getting ahead of itself? This article explains what the current share price might be indicating. Over the past week the stock ...

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Over the past week the stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-wor/worley-shares/news/is-worley-asxwor-priced-fairly-after-recent-contract-pipelin\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Worley (ASX:WOR) Priced Fairly After Recent Contract Pipeline Updates?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Worley (ASX:WOR) Priced Fairly After Recent Contract Pipeline Updates?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-28 02:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/capital-goods/asx-wor/worley-shares/news/is-worley-asxwor-priced-fairly-after-recent-contract-pipelin><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if Worley at A$12.94 is offering fair value or if the price is getting ahead of itself? This article explains what the current share price might be indicating. Over the past week the stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-wor/worley-shares/news/is-worley-asxwor-priced-fairly-after-recent-contract-pipelin\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4006","symbol_name":"钢铁","start_time":0,"source_url":"https://simplywall.st/stocks/au/capital-goods/asx-wor/worley-shares/news/is-worley-asxwor-priced-fairly-after-recent-contract-pipelin","article_id":"2638155638","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/1022000-choice1-main-header/1585186551056"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/capital-goods/asx-wor/worley-shares/news/is-worley-asxwor-priced-fairly-after-recent-contract-pipelin","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2638155638","pubTimestamp":1779905207,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if Worley at A$12.94 is offering fair value or if the price is getting ahead of itself? This article explains what the current share price might be indicating.\nOver the past week the stock has returned 6.5%, with 9.5% over the last month and 3.1% year to date, while the 1 year return is 3.5% and the 3 year return shows a decline of 12.0% compared to a 38.3% gain over 5 years.\nRecent news flow around Worley has focused on its role as an engineering and consulting provider to energy...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4006":"钢铁","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK7055":"建筑与工程","BK7108":"石油天然气设备与服务","BK4161":"工业机械","WOR":"Worthington Industries Inc","BK4191":"家用电器","WOR.AU":"WORLEY LTD"},"translate_title":"Worley(ASX：WOR)在最近的合同管道更新后定价公平吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WOR.AU":1.5,"DCF":1,"WOR":1.5},"content_text":"Wondering if Worley at A$12.94 is offering fair value or if the price is getting ahead of itself? This article explains what the current share price might be indicating. Over the past week the stock has returned 6.5%, with 9.5% over the last month and 3.1% year to date, while the 1 year return is 3.5% and the 3 year return shows a decline of 12.0% compared to a 38.3% gain over 5 years. Recent news flow around Worley has focused on its role as an engineering and consulting provider to energy and resources projects, with investors paying close attention to contract wins, project pipelines, and sector sentiment. These updates help frame how the market is reacting to Worley's exposure to long term infrastructure and energy investment themes. On Simply Wall St's valuation checks, Worley scores 3 out of 6. Next up is a look at what different valuation methods indicate about that score and why a broader view of valuation at the end of the article can be even more useful.  Find out why Worley's 3.5% return over the last year is lagging behind its peers. AdvertisementApproach 1: Worley Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting the company’s future cash flows and then discounting them back to today’s value. For Worley, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is A$524.3 million. Analyst projections extend to A$482.9 million in A$ free cash flow by 2028, with further A$ cash flows out to 2035 extrapolated by Simply Wall St rather than based on direct analyst forecasts. Bringing all of those projected A$ cash flows back to today gives an estimated intrinsic value of A$14.22 per share. Compared with the recent share price of A$12.94, the DCF suggests Worley trades at about a 9.0% discount, which sits in the “close but not extreme” range rather than a huge gap. This points to Worley looking roughly in line with its DCF value, with only a modest margin implied by the model. Result: ABOUT RIGHT Worley is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. WOR Discounted Cash Flow as at May 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Worley. Approach 2: Worley Price vs Earnings For profitable companies, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, which is often how the market anchors its view of value. In simple terms, higher growth expectations and lower perceived risk usually support a higher “normal” or “fair” P/E ratio, while slower growth and higher risk tend to warrant a lower one. Worley currently trades on a P/E of 18.37x. That sits above the Construction industry average of 14.57x, but below the broader peer group average of 35.45x, so the stock is not at either extreme when viewed against those simple benchmarks. Simply Wall St’s Fair Ratio for Worley is 20.97x. This is a proprietary estimate of what the P/E might reasonably be, given factors such as earnings growth, profit margins, industry, market cap and company specific risks. That Fair Ratio can be more informative than a straight comparison with peers or the industry average, because it adjusts for Worley’s own characteristics rather than assuming all companies should trade on the same multiple. Comparing the Fair Ratio of 20.97x with the current P/E of 18.37x suggests the stock screens as undervalued on this metric. Result: UNDERVALUED ASX:WOR P/E Ratio as at May 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 4 top founder-led companies. Upgrade Your Decision Making: Choose your Worley Narrative Earlier it was mentioned that there is an even better way to understand valuation, so Narratives on Simply Wall St’s Community page let you attach a clear story about Worley’s future revenue, earnings and margins to a set of forecast numbers, translate that into a Fair Value, compare it with the current price to decide whether the stock looks appealing or stretched, and then keep that view updated as fresh news or earnings arrive. This is why one investor might build a more optimistic Worley Narrative closer to the A$20.51 fair value implied by the most bullish analysts, while another might prefer a more cautious Narrative around A$13.8. Both are using the same tool, but with different assumptions about how Worley’s project pipeline and margins evolve. Do you think there's more to the story for Worley? Head over to our Community to see what others are saying! ASX:WOR 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        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\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Worley might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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