Marathon Oil explores for, produces and markets crude oil and condensate, NGLs and natural gas. The company was founded in 1887 and is based in Houston, Texas.
MRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MRO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Marathon Oil Corp ranked in the 21th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 70.5%. In terms of the factors that were most noteworthy in this DCF analysis for MRO, they are:
Its compound free cash flow growth rate, as measured over the past 5.76 years, is -0.17% -- higher than just 12.3% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 70.07% of its sector Energy.
The business' balance sheet reveals debt to be 55% of the company's capital (with equity being the remaining amount). Approximately 73.32% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MPC, FTSI, PEIX, SLB, and FLMN can be thought of as valuation peers to MRO, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Marathon Oil ([[MRO]] -1.7%) lags most major E&P names after Goldman Sachs downgraded the stock to Sell from Neutral with a $6 price target, while the firm also lowered Diamondback Energy ([[FANG]] -1.9%) and Murphy Oil ([[MUR]] -3.2%) to Neutral from Buy with respective $50 and $14.50 targets.Goldman analyst Brian...