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. 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 CVX, they are:
CVX'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 28.86% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Chevron Corp has a reliance on debt greater than only 11.81% 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 NBR, CHX, NCSM, NBLX, and SGU.
Buy Chevron (CVX) and ConocoPhillips (COP) but sell ExxonMobil (XOM), Goldman Sachs analyst Neil Mehta says ahead of the energy giants' upcoming earnings reports, which he believes will reflect a challenging quarter.Perhaps the most important metric to watch is free cash flow, and Mehta expects Chevron and Conoco "could see...
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