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 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Marathon Oil Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 2.61; that's higher than 54.11% of US stocks in the Energy sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 5.55 years comes in at -0.27%; that's greater than only 6.28% of US stocks we're applying DCF forecasting to.
Marathon Oil Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BP, PSX, USEG, GLP, and PTR 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.