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:
We started the process of determining a valid price forecast for Equinor Asa with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Equinor Asa ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 23.17%. The most interesting components of our discounted cash flow analysis for Equinor Asa ended up being:
Equinor Asa's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 7.21% 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 7.21% 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 93.91% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLR, XEC, CKH, CLMT, and COG can be thought of as valuation peers to EQNR, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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Equinor ([[EQNR]] -1.5%) plans to build in Britain a plant to produce hydrogen from natural gas in combination with carbon capture and storage.The project, called Hydrogen to Humber Saltend (H2H Saltend), supports the UK government's aim to establish at least one low-carbon industrial cluster by 2030 and the world's first...
Norway's plan for a full-scale carbon capture and storage project could end up being "considerably unprofitable," according to a new independent report, which also says cost of building and operating the project over 10 years could run as high as NOK25B ($2.6B).The project under consideration, which involves capturing carbon dioxide...