DCF Tool

OXY

Occidental Petroleum Corp. – Crude Petroleum and Natural Gas Extraction
Occidental is an international energy company with assets in the United States, Middle East, Africa and Latin America. It is one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Its midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Its chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Its Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow its business while reducing emissions. It is committed to using its global leadership in carbon management to advance a lower-carbon world.
Analysis Results
Intrinsic Value $1,926.71
Latest Price $61.45
Relative Value 97% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 62.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 62.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 15.2 14.3
2023 24.8 21.8
2024 40.4 33.3
2025 65.7 50.9
2026 107 77.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2360 billion. This corresponds to a present value of 1610 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 198 billion. Adding in the terminal value gives a total present value of 1810 billion.

There are presently 937.0 million outstanding shares, so the intrinsic value per share is 1926.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,211,000,000
Current Cash 2,764,000,000
Current Liabilities 8,324,000,000
Current Debt 186,000,000
Non-Cash Working Capital (NCWC) -691,000,000
Change in NCWC 281,000,000
EBIT 5,296,000,000
Tax Provision 915,000,000
Depreciation and Amortization 8,447,000,000
Capital Expenditure -2,870,000,000
Unlevered Free Cash Flow 9,846,080,971
Current Assets 8,819,000,000
Current Cash 2,008,000,000
Current Liabilities 8,223,000,000
Current Debt 440,000,000
Non-Cash Working Capital (NCWC) -972,000,000
Change in NCWC -1,723,000,000
EBIT -888,000,000
Tax Provision -2,172,000,000
Depreciation and Amortization 8,097,000,000
Capital Expenditure -2,535,000,000
Unlevered Free Cash Flow 2,951,000,000
Current Assets 18,681,000,000
Current Cash 3,032,000,000
Current Liabilities 14,949,000,000
Current Debt 51,000,000
Non-Cash Working Capital (NCWC) 751,000,000
Change in NCWC 1,148,000,000
EBIT 3,188,000,000
Tax Provision 693,000,000
Depreciation and Amortization 5,981,000,000
Capital Expenditure -6,355,000,000
Unlevered Free Cash Flow 3,269,000,000
Current Assets 9,932,000,000
Current Cash 3,033,000,000
Current Liabilities 7,412,000,000
Current Debt 116,000,000
Non-Cash Working Capital (NCWC) -397,000,000
Change in NCWC -95,000,000
EBIT 5,448,000,000
Tax Provision 1,477,000,000
Depreciation and Amortization 3,977,000,000
Capital Expenditure -4,975,000,000
Unlevered Free Cash Flow 2,920,139,800
Current Assets 8,270,000,000
Current Cash 1,672,000,000
Current Liabilities 7,400,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) -302,000,000
Change in NCWC -135,000,000
EBIT 1,452,000,000
Tax Provision 17,000,000
Depreciation and Amortization 4,002,000,000
Capital Expenditure -3,599,000,000
Unlevered Free Cash Flow 1,701,412,650
Current Assets 8,428,000,000
Current Cash 2,233,000,000
Current Liabilities 6,362,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -167,000,000
Change in NCWC -976,000,000
EBIT -855,000,000
Tax Provision -662,000,000
Depreciation and Amortization 4,268,000,000
Capital Expenditure -2,717,000,000
Unlevered Free Cash Flow -280,000,000
Current Assets 9,402,000,000
Current Cash 3,201,000,000
Current Liabilities 6,842,000,000
Current Debt 1,450,000,000
Non-Cash Working Capital (NCWC) 809,000,000
Change in NCWC -1,031,000,000
EBIT 691,000,000
Tax Provision -1,330,000,000
Depreciation and Amortization 4,544,000,000
Capital Expenditure -5,272,000,000
Unlevered Free Cash Flow -1,068,000,000
Current Assets 13,873,000,000
Current Cash 3,789,000,000
Current Liabilities 8,244,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,840,000,000
Change in NCWC 2,344,000,000
EBIT 6,376,000,000
Tax Provision 1,685,000,000
Depreciation and Amortization 4,261,000,000
Capital Expenditure -8,930,000,000
Unlevered Free Cash Flow 2,366,000,000
Current Assets 11,323,000,000
Current Cash 3,393,000,000
Current Liabilities 8,434,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -504,000,000
Change in NCWC -1,714,000,000
EBIT 9,135,000,000
Tax Provision 3,755,000,000
Depreciation and Amortization 5,347,000,000
Capital Expenditure -9,037,000,000
Unlevered Free Cash Flow 186,314,146
Current Assets 9,492,000,000
Current Cash 1,592,000,000
Current Liabilities 7,290,000,000
Current Debt 600,000,000
Non-Cash Working Capital (NCWC) 1,210,000,000
Change in NCWC 1,396,000,000
EBIT 9,553,000,000
Tax Provision 3,118,000,000
Depreciation and Amortization 4,511,000,000
Capital Expenditure -10,226,000,000
Unlevered Free Cash Flow 1,392,099,574

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