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 6th 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. In terms of the factors that were most noteworthy in this DCF analysis for XOM, they are:
Exxon Mobil Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 18% of tickers in our DCF set.
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 merely 18% 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 14.62% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FPPP, NE, OAS, OXY, and PTR can be thought of as valuation peers to XOM, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
(Bloomberg) -- Crude gained after signals of shrinking stockpiles in the U.S., but fears of the virus crimping demand are holding futures back from rallying past $40 a barrel.The Energy Information Administration reported domestic crude inventories fell 7.2 million barrels last week, the biggest retreat since December, and at the nation’s biggest storage hub in Cushing, Oklahoma, supplies fell for an eighth straight week. Yet implied fuel demand ticked lower, deepening worries that accelerating coronavirus cases will limit the market’s recovery.“In Cushing, we’re down to 45 million barrels in inventory. We’ve dropped from 65 million barrels in early May, which is pretty stinking meaningful,” said Matt Sallee, a portfolio manager at Tortoise.Crude has climbed from negative territory in A...
DOW UPDATE Shares of Walgreens Boots and Exxon Mobil are seeing declines Wednesday afternoon, sending the Dow Jones Industrial Average into negative territory. The Dow (DJIA) was most recently trading 37 points (0.