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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Suncor Energy Inc. 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 409.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SU, they are:
Suncor Energy Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 5.83% 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 11.97% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TRMD, NR, PAA, BKEP, and HESM 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.
Suncor Energy ([[SU]] +1.4%) plans to eliminate 10%-15% of its ~13K-person workforce over the next year and a half, including 5% cuts within six months, the Calgary Herald reports.Employees were informed of the restructuring this morning via a conference call with CEO Mark Little, who cited the drop in oil...
CALGARY — Oilsands and retail fuel giant Suncor Energy Inc. says it will eliminate as many as 1,930 jobs over the next 18 months as a result of cost-cutting to deal with low oil prices and market volatility.