Chevron engages in the petroleum, chemicals, and power and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The company was founded in 1879 and is based in San Ramon, California.
CVX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CVX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chevron Corp ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2172.83%. The most interesting components of our discounted cash flow analysis for Chevron Corp ended up being:
Chevron Corp's effective tax rate, as measured by taxes paid relative to net income, is at 30 -- greater than 92.01% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Chevron Corp has a reliance on debt greater than only 10.91% 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 CVX, try DCP, CNQ, THTI, MRC, and MPLX.