ConocoPhillips Stock Valuation

COP
 Stock
  

USD 115.93  0.31  0.27%   

What is the intrinsic value of ConocoPhillips stock? 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 ConocoPhillips, is its stock price multiplied by the total number of shares outstanding, calculating ConocoPhillips' enterprise value requires a different approach. It uses ConocoPhillips' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
ConocoPhillips shows a prevailing Real Value of $109.06 per share. The current price of the firm is $115.93. At this time, the firm appears to be overvalued. Our model approximates the value of ConocoPhillips from analyzing the firm fundamentals such as Current Valuation of 137.62 B, profit margin of 23.42 %, and Return On Equity of 27.83 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
ConocoPhillips 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 ConocoPhillips's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 115.93
Please note that ConocoPhillips' price fluctuation is very steady at this time. Calculation of the real value of ConocoPhillips is based on 3 months time horizon. Increasing ConocoPhillips' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for ConocoPhillips is useful when determining the fair value of the ConocoPhillips stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of ConocoPhillips. Since ConocoPhillips is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ConocoPhillips Stock. However, ConocoPhillips' 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.
106.46
Downside
109.06
Real Value
127.52
Upside
Estimating the potential upside or downside of ConocoPhillips helps investors to forecast how ConocoPhillips 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 ConocoPhillips more accurately as focusing exclusively on ConocoPhillips' fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimated ValueHigh
114.11116.71119.31
Details
13 Analysts
Consensus
LowTarget PriceHigh
77.0090.69100.00
Details

ConocoPhillips Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining ConocoPhillips's current stock value. Our valuation model uses many indicators to compare ConocoPhillips value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ConocoPhillips competition to find correlations between indicators driving ConocoPhillips's intrinsic value. More Info.
ConocoPhillips is number one stock in five year return category among related companies. It is number one stock in beta category among related companies totaling about  0.56  of Beta per Five Year Return. The ratio of Five Year Return to Beta for ConocoPhillips is roughly  1.79 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ConocoPhillips by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ConocoPhillips' 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 ConocoPhillips' 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 ConocoPhillips' 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 ConocoPhillips and how it compares across the competition.

About ConocoPhillips Valuation

The stock valuation mechanism determines the current worth of ConocoPhillips on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of ConocoPhillips. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ConocoPhillips based exclusively on its fundamental and basic technical indicators. By analyzing ConocoPhillips'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 ConocoPhillips'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 ConocoPhillips. We calculate exposure to ConocoPhillips's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ConocoPhillips's related companies.
ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas , and natural gas liquids worldwide. It primarily engages in the conventional and tight oil reservoirs, shale gas, heavy oil, LNG, oil sands, and other production operations. The companys portfolio includes unconventional plays in North America conventional assets in North America, Europe, Asia, and Australia various LNG developments oil sands assets in Canada and an inventory of conventional and unconventional exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.
ConocoPhillips' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether ConocoPhillips' value is low or high relative to the company's performance and growth projections. Determining the market value of ConocoPhillips can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of ConocoPhillips represents a small ownership stake in the entity. As a stockholder of ConocoPhillips, 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.

ConocoPhillips Dividends Analysis For Valuation

There are various types of dividends ConocoPhillips 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 ConocoPhillips 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 ConocoPhillips directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When ConocoPhillips pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of ConocoPhillips by the value of the dividends paid out.

ConocoPhillips 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 ConocoPhillips 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 Ratio1.29
Earnings Quarterly Growth486.50%
Revenue Growth82.80%
Payout Ratio23.48%
Enterprise Value To Ebitda5.40
Earnings Growth485.30%
Enterprise Value To Revenue2.51
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When running ConocoPhillips price analysis, check to measure ConocoPhillips' 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 ConocoPhillips is operating at the current time. Most of ConocoPhillips' value examination focuses on studying past and present price action to predict the probability of ConocoPhillips' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ConocoPhillips' price. Additionally, you may evaluate how the addition of ConocoPhillips to your portfolios can decrease your overall portfolio volatility.
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Is ConocoPhillips' 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 ConocoPhillips. If investors know ConocoPhillips 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 ConocoPhillips listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of ConocoPhillips is measured differently than its book value, which is the value of ConocoPhillips that is recorded on the company's balance sheet. Investors also form their own opinion of ConocoPhillips' value that differs from its market value or its book value, called intrinsic value, which is ConocoPhillips' 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 ConocoPhillips' market value can be influenced by many factors that don't directly affect ConocoPhillips' 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 ConocoPhillips' value and its price as these two are different measures arrived at by different means. Investors typically determine ConocoPhillips value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ConocoPhillips' 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.