Suncor Energy focuses on developing petroleum resource basins, explores, acquires, develops, produces, and markets crude oil and natural gas, transports and refines crude oil, markets petroleum and petrochemical products. The company was founded in 1953 and is based in Calgary, Canada.
SU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Suncor Energy Inc ranked in the 80th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 589%. As for the metrics that stood out in our discounted cash flow analysis of Suncor Energy Inc, consider:
Suncor Energy Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 4.69% of tickers in our DCF set.
Suncor Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 13.65% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SU, try MPLX, CAPL, HMLP, SUN, and CHX.
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