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:
We started the process of determining a valid price forecast for Chevron Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Chevron Corp ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Chevron Corp ended up being:
Chevron Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -20.92. This coverage rate is greater than that of just 5.12% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Chevron Corp has a reliance on debt greater than just 18.2% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Chevron Corp? See FGPRQ, MMP, NGS, NNA, and NOV.
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