Equinor ASA engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. The company was founded in 1972 and is based in Stavanger, Norway.
EQNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EQNR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Equinor Asa ranked in the 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 22.5%. As for the metrics that stood out in our discounted cash flow analysis of Equinor Asa, consider:
Equinor Asa's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 4.19% of tickers in our DCF set.
EQNR'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 4.19% of tickers in our DCF set.
As a business, Equinor Asa experienced a tax rate of about 41% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 93.8% of stocks generating free cash flow.
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 Equinor Asa? See CRK, CLMT, RDS.A, TGA, and SDPI.
On September 29, 2020, Norwegian energy giant Equinor ASA (EQNR) announced that it made a discovery in the North Sea. While this discovery is not especially large, it does reinforce my earlier article that stated that the Norwegian oil story may not be over yet. Equinor still has some growth...
Equinor (EQNR) says it plans to cut its exploration staff by ~30% globally by 2023 to reduce costs, as the pandemic reduces demand for petroleum; the company had 21K total employees at year-end 2019.The company says the planned reduction will affect "hundreds of positions" by the end of 2022 both...
With me on the line in Oslo, we have Lars Christian Bacher, the CFO; and Svein Skeie, who is the Head of Performance Manager. With that, I'm delighted to pass straight over to Lars Christian to start the call.