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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Bp Plc. To summarize, we found that Bp Plc ranked in the 18th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 75.5%. As for the metrics that stood out in our discounted cash flow analysis of Bp Plc, consider:
The company's compound free cash flow growth rate over the past 5.05 years comes in at -0.02%; that's greater than just 22.68% of US stocks we're applying DCF forecasting to.
Bp Plc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.82% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Bp Plc has a reliance on debt greater than only 14.22% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VTOL, PEIX, PNRG, SHI, and VTNR can be thought of as valuation peers to BP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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