Occidental Stock Valuation

OXY
 Stock
  

USD 70.28  0.84  1.18%   

Do you wonder what the value of Occidental Petroleum Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Occidental Petroleum, is its stock price multiplied by the total number of shares outstanding, calculating Occidental Petroleum's enterprise value requires a different approach. It uses Occidental Petroleum's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Occidental Petroleum Free Cash Flow is fairly stable at the moment as compared to the past year. Occidental Petroleum reported Free Cash Flow of 664.2 Million in 2021. Tangible Asset Value is likely to rise to about 135.7 B in 2022, whereas Enterprise Value is likely to drop slightly above 66.9 B in 2022.
Occidental Petroleum Corp holds a recent Real Value of $54.0 per share. The prevailing price of the company is $70.28. At this time, the company appears to be overvalued. Our model determines the value of Occidental Petroleum Corp from analyzing the company fundamentals such as Shares Outstanding of 933.98 M, operating margin of 55.98 %, and Return On Equity of 47.85 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Occidental Petroleum Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Occidental Petroleum's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Occidental Most Recent Valuation Data

Price Book
3.41
EPS Estimate Next Quarter
2.27
Price Sales
1.76
Forward Annual Dividend Yield
0.0071
EBITDA
20.7 B
Dividend Share
0.4
Overvalued
Today 70.28
Please note that Occidental Petroleum's price fluctuation is very steady at this time. Calculation of the real value of Occidental Petroleum Corp is based on 3 months time horizon. Increasing Occidental Petroleum's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Occidental Petroleum Corp is useful when determining the fair value of the Occidental stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Occidental Petroleum. Since Occidental Petroleum is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Occidental Stock. However, Occidental Petroleum's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
54.00
Real Value
77.31
Upside
Estimating the potential upside or downside of Occidental Petroleum Corp helps investors to forecast how Occidental stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Occidental Petroleum more accurately as focusing exclusively on Occidental Petroleum's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
1.982.182.36
Details
Hype
Prediction
LowEstimated ValueHigh
67.6270.4373.24
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.100.100.10
Details
16 Analysts
Consensus
LowTarget PriceHigh
20.0039.3555.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Occidental Petroleum's intrinsic value based on its ongoing forecasts of Occidental Petroleum's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Occidental Petroleum's closest peers. When choosing an evaluation method for Occidental Petroleum Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Occidental Petroleum Investments

7.93 Billion

Occidental Valuation Drivers Correlation

Many accounts on the financial statements of Occidental Petroleum Corp are highly interrelated and sometimes correlated. Consequently, when conducting Occidental's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Occidental
Click cells to compare fundamentals

Occidental Valuation Trend

Knowing Occidental Petroleum's actual value is paramount for traders to make sound investment determinations. Occidental Petroleum's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Occidental Petroleum's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Occidental Petroleum's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Occidental Market Cap

Occidental Petroleum Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Oil & Gas E&P industry is now estimated at about 464.6 Billion. Occidental Petroleum retains roughly 66.42 Billion in market capitalization claiming about 14% of all equities under Oil & Gas E&P industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

Occidental Petroleum Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Occidental Petroleum's current stock value. Our valuation model uses many indicators to compare Occidental Petroleum value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Occidental Petroleum competition to find correlations between indicators driving Occidental Petroleum's intrinsic value. More Info.
Occidental Petroleum Corp is considered to be number one stock in beta category among related companies. It is considered to be number one stock in last dividend paid category among related companies creating about  0.28  of Last Dividend Paid per Beta. The ratio of Beta to Last Dividend Paid for Occidental Petroleum Corp is roughly  3.54 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Occidental Petroleum by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Occidental Petroleum's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Occidental Petroleum's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Occidental Petroleum's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Occidental Petroleum and how it compares across the competition.

About Occidental Petroleum Valuation

The stock valuation mechanism determines the current worth of Occidental Petroleum Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Occidental Petroleum Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Occidental Petroleum Corp based exclusively on its fundamental and basic technical indicators. By analyzing Occidental Petroleum's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Occidental Petroleum's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Occidental Petroleum. We calculate exposure to Occidental Petroleum's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Occidental Petroleum's related companies.
Fiscal Year End
December
Industry
Oil & Gas E&P
Concentration
Integrated Oil & Gas
Full Time Employees
11.7 K
Service Category
Oil, Gas & Consumable Fuels
Employer Id Number
95-4035997
Last ReportedProjected for 2022
Gross Profit5.6 BB
Profit Margin 8.82  9.52 
Occidental Petroleum's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Occidental Petroleum's value is low or high relative to the company's performance and growth projections. Determining the market value of Occidental Petroleum can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Occidental Petroleum represents a small ownership stake in the entity. As a stockholder of Occidental, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Occidental Petroleum Dividends Analysis For Valuation

Dividend Yield is likely to rise to 0.09 in 2022, whereas Preferred Dividends Income Statement Impact is likely to drop slightly above 284.5 M in 2022. . Occidental Petroleum Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Occidental Petroleum reported Accumulated Retained Earnings Deficit of 18.16 Billion in 2021. Earning Before Interest and Taxes EBIT is likely to rise to about 1 B in 2022, whereas Price to Earnings Ratio are likely to drop (31.20)  in 2022.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact286.2 M284.5 M
Payment of Dividends and Other Cash Distributions-2.4 B-2.5 B
Dividend Yield 0.09  0.09 
Dividends per Basic Common Share 3.61  3.51 
There are various types of dividends Occidental Petroleum can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Occidental shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Occidental Petroleum Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Occidental pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Occidental Petroleum by the value of the dividends paid out.

Occidental Petroleum Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Occidental Petroleum does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.79
Earnings Quarterly Growth3,545.60%
Revenue Growth79.20%
Payout Ratio2.75%
Enterprise Value To Ebitda5.22
Enterprise Value To Revenue2.92

Occidental Petroleum Current Valuation Indicators

Valuation refers to the process of determining the present value of Occidental Petroleum Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Occidental we look at many different elements of the entity such as Occidental's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Occidental Petroleum's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Occidental Petroleum's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Occidental Petroleum, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Occidental Petroleum's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Occidental Petroleum's worth.
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When running Occidental Petroleum Corp price analysis, check to measure Occidental Petroleum's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Occidental Petroleum is operating at the current time. Most of Occidental Petroleum's value examination focuses on studying past and present price action to predict the probability of Occidental Petroleum's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Occidental Petroleum's price. Additionally, you may evaluate how the addition of Occidental Petroleum to your portfolios can decrease your overall portfolio volatility.
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Is Occidental Petroleum's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Occidental Petroleum. If investors know Occidental will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Occidental Petroleum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.89
Market Capitalization
63.9 B
Quarterly Revenue Growth YOY
0.38
Return On Assets
0.11
Return On Equity
0.54
The market value of Occidental Petroleum Corp is measured differently than its book value, which is the value of Occidental that is recorded on the company's balance sheet. Investors also form their own opinion of Occidental Petroleum's value that differs from its market value or its book value, called intrinsic value, which is Occidental Petroleum's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Occidental Petroleum's market value can be influenced by many factors that don't directly affect Occidental Petroleum's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Occidental Petroleum's value and its price as these two are different measures arrived at by different means. Investors typically determine Occidental Petroleum value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Occidental Petroleum's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.