Royal Dutch Shell PLC Royal Dutch Shell American Depositary Shares (Each representing two Class A Ordinary Shares) (RDS.A) Company Bio
Royal Dutch Shell operates as an independent oil and gas company worldwide. It operates through Upstream and Downstream segments. The company was founded in 1907 and is based in The Hague, the Netherlands.
RDS.A 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 Royal Dutch Shell plc. To summarize, we found that Royal Dutch Shell plc ranked in the 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 23.83%. As for the metrics that stood out in our discounted cash flow analysis of Royal Dutch Shell plc, consider:
The company's compound free cash flow growth rate over the past 5.01 years comes in at -0.08%; that's greater than just 15.6% of US stocks we're applying DCF forecasting to.
Royal Dutch Shell plc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.2% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Royal Dutch Shell plc has a reliance on debt greater than only 23.32% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EQNR, BKR, CRK, TGA, and OIS can be thought of as valuation peers to RDS.A, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
The U.S. Supreme Court on Friday agreed to hear an appeal by energy companies including BP PLC, Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell PLC contesting a lawsuit by the city of Baltimore seeking damages for the impact of global climate change.
After rising as much as 0.9%, the pan-European STOXX 600 ended 0.2% higher, fading as oil prices slumped 5% on a worsening demand outlook as coronavirus cases rise. Total, BP and Royal Dutch Shell fell between 2.4% and 3.8%, while the oil & gas index slid 1.7%, the biggest decliner among sectors.
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