Exxon Mobil is engaged in the exploration and production of crude oil and natural gas. The Company is involved in the manufacturing of petroleum products, and transportation and sale of crude oil, natural gas and petroleum products. The company was founded in 1870 and is based in Irving, Texas.
XOM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for XOM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Exxon Mobil Corp ranked in the 11th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Exxon Mobil Corp, consider:
The company's compound free cash flow growth rate over the past 5.56 years comes in at -0.17%; that's greater than just 11.39% of US stocks we're applying DCF forecasting to.
XOM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 28.14% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Exxon Mobil Corp has a reliance on debt greater than only 14.12% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Exxon Mobil Corp? See OXY, XEC, NOA, USEG, and BP.