Continental Resources explores, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company was founded in 1967 and is based in Oklahoma City, Oklahoma.
CLR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Continental Resources Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Continental Resources Inc ranked in the 63th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Continental Resources Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 4.67; that's higher than 69.67% of US stocks in the Energy sector that have positive free cash flow.
35% of the company's capital comes from equity, which is greater than merely 21.55% of stocks in our cash flow based forecasting set.
Continental Resources Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 3.19% of tickers in our DCF set.
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 Continental Resources Inc? See VLO, CKH, SHI, KMI, and NINE.