ConocoPhillips explores, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The company was founded in 2002 and is based in Houston, Texas.
COP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for COP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Conocophillips ranked in the 66th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 146.83%. As for the metrics that stood out in our discounted cash flow analysis of Conocophillips, consider:
Conocophillips's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 17.71% of tickers in our DCF set.
COP'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 only 17.71% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Conocophillips has a reliance on debt greater than merely 17.43% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KMI, BKR, PARR, CXO, and GMLP can be thought of as valuation peers to COP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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The oil and gas sector is a volatile place right now. Here's what separates ConocoPhillips (NYSE: COP) from Occidental Petroleum (NYSE: OXY), and why ConocoPhillips is the better oil producer stock to buy right now. From wellhead to gas station, the oil business has seen its fair share of volatility over the past few decades.