Marathon Petroleum engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Speedway, and Pipeline Transportation. The company was founded in 1998 and is based in Findlay, Ohio.
MPC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Marathon Petroleum Corp. To summarize, we found that Marathon Petroleum Corp ranked in the 3th 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 Marathon Petroleum Corp ended up being:
The compound growth rate in the free cash flow of Marathon Petroleum Corp over the past 5.44 years is -0.28%; that's better than only 11.25% of cash flow producing equities in the Energy sector, where it is classified.
34% of the company's capital comes from equity, which is greater than only 16.02% of stocks in our cash flow based forecasting set.
Marathon Petroleum Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.64. This coverage rate is greater than that of merely 11.22% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EPSN, SNP, CLR, CVI, and EPM can be thought of as valuation peers to MPC, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Marathon Petroleum (MPC) has started cutting employees at its U.S. operations, Reuters reports, amid weaker global demand for motor fuels due to the pandemic.About 60 salaried staff were let go by midday at Marathon's Galveston Bay refinery in Texas, and the operation may lose as many as 100 workers this...
Marathon Petroleum Corp , the largest U.S. oil refiner, began cutting jobs on Tuesday across the company, according to people familiar with the matter, as the COVID-19 pandemic sapped demand for motor fuels.