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 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 752.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Marathon Petroleum Corp ended up being:
The company has produced more trailing twelve month cash flow than 89.57% of its sector Energy.
31% of the company's capital comes from equity, which is greater than only 19.84% of stocks in our cash flow based forecasting set.
Marathon Petroleum Corp's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 2.73% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLMT, TOT, HFC, ENLC, and LPG 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.