Canadian Natural Resources Limited (CNQ) Company Bio
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids. The company was founded in 1973 and is based in Calgary, Canada.
CNQ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Canadian Natural Resources Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Canadian Natural Resources Ltd ranked in the 91th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CNQ, they are:
Canadian Natural Resources Ltd's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 6.19% of tickers in our DCF set.
Canadian Natural Resources Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 9.38% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GLOP, THTI, CVX, DCP, and NBLX can be thought of as valuation peers to CNQ, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.