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:
Below please find a table outlining a discounted cash flow forecast for BP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Bp Plc ranked in the 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 82.17%. As for the metrics that stood out in our discounted cash flow analysis of Bp Plc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 87. Its equity weight surpasses that of 91.35% of free cash flow generating stocks in the Energy sector.
The business' balance sheet reveals debt to be 13% of the company's capital (with equity being the remaining amount). Approximately just 23.86% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BP, try PSX, MRO, USEG, GLP, and PTR.