BP p.l.c. is an integrated oil and gas company. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. The Company operates through three segments: Upstream, Downstream and Rosneft. Its Upstream segment is engaged in oil and natural gas exploration, field development and production; midstream transportation, storage and processing, and the marketing and trading of natural gas, including liquefied natural gas (LNG), together with power and natural gas liquids (NGLs). Its Downstream segment is engaged in refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail customers. The company was founded in 1889 and is based in London, England.
BP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Bp Plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Bp Plc ranked in the 16th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for BP, they are:
Bp Plc's effective tax rate, as measured by taxes paid relative to net income, is at 26 -- greater than 88.2% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Bp Plc has a reliance on debt greater than only 8.43% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Bp Plc? See CEO, ERF, APA, SHI, and GBR.
On Tuesday, June 30, Royal Dutch Shell (RDS.A) (RDS.B), a leading oil-and-gas company, announced it would take an asset write-off — slashing its asset values on the balance sheet — of between $15 billion and $22 billion in the second quarter. The same amount, of course, will hit Shell’s quarterly...
Oil markets slipped Friday as the resurgence of Covid-19 cases, particularly in the U.S., the largest consumer in the world, threatened the recovery of crude demand. At 7:30 AM ET (1130 GMT), U.S. crude futures traded 1.2% lower at $40.15 a barrel. The U.S. has recorded around a quarter of the almost 11 million cases worldwide, according to data from Johns Hopkins University, and the number is growing rapidly.
In 1998, as the first Internet boom was raging, I became bullish on oil. By 2011, my research went viral on MarketWatch. I beat the big investment banks to recognizing the "one thing that will change everything for America" which was the shale boom. In 2014, I predicted the first...
Climate change may be having its day in court. With the slow pace of international climate negotiations, lawyers from Switzerland to San Francisco are increasingly filing lawsuits demanding action. Today, that number is 1,600, including 1,200 lawsuits in the United States alone, according to data reported Friday by the London School of Economics.
Exxon Mobil Corp assets are likely overvalued in light of weak oil-demand outlook, according to Wall Street analysts, and face write-downs as soon as this month. Oil producers BP Plc, Occidental Petroleum , and Royal Dutch Shell have cut billions of dollars off their assets in recent weeks. The oil industry "is clearly altering its view on the value of assets and we would not be surprised if Exxon followed suit," said Cowen analyst Jason Gabelman by email.