Cabot Oil & Gas develops, exploits, explores for, produces, and markets natural gas, oil, and natural gas liquids in the United States. The company was founded in 1989 and is based in Houston, Texas.
COG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for COG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cabot Oil & Gas Corp ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cabot Oil & Gas Corp ended up being:
COG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 35.84% of tickers in our DCF set.
Cabot Oil & Gas Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 12.09. This coverage rate is greater than that of 79.04% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Cabot Oil & Gas Corp has a reliance on debt greater than just 8.39% of them.
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 COG, try EPM, CLMT, OIS, PNRG, and MMP.
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