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:
We started the process of determining a valid price forecast for Suncor Energy Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Suncor Energy Inc ranked in the 78th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 392.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Suncor Energy Inc ended up being:
Suncor Energy Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 12.8% 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 only 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 16.22% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MMLP, DKL, ENLC, NINE, and SPN can be thought of as valuation peers to SU, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
The shift to electric vehicles and other low-carbon technologies could disrupt crude oil demand on a similar scale to the coronavirus pandemic, Suncor Energy Inc's chief executive said on Monday. The comments are a stark prediction in an industry that frequently downplays the impact of electrification and points to forecasts of rising global oil demand to justify new investment and pipeline expansions. Canada is the world's fourth-largest oil producer and the sector accounts for 10.6% of the country's gross domestic product.
After selling airline stocks and keeping the Suncor Energy stock, investors are eagerly waiting the next moves of Warren Buffett. The value investor has US$137 billion in cash to invest. The post The World Is Watching Warren Buffett’s Latest Moves appeared first on The Motley Fool Canada .
Gia Schneider and her brother Abe started Natel Energy based on a hydropower turbine their father designed. And after more than a decade of R&D, pilots, software development and a project for Apple, Natel is preparing for the next level of scale. “Our objectives have actually not wavered. But they haven’t wavered because of rigid adherence to dogma, they have not wavered because we check in consistently about ‘is this the right problem to solve?’” says Schneider. Natel is commercializing a turbine for low-head hydro applications at old dams, irrigation canals and run-of-river projects. It’s designed to protect wildlife and drastically cut the ecological impact of hydropower. The original design came from Gia’s father, who started working on low-flow turbines back in the 1970s — but it’s...
Contaminated water has been flowing into Sand Creek and the South Platte River from the Suncor Energy oil refinery north of Denver, and company officials on Wednesday said they were monitoring conditions and "will make any necessary repairs" to a containment area that has been failing.