Marathon Stock Valuation

MRO Stock  USD 28.31  0.45  1.56%   
What is the current enterprise value of Marathon Oil? 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 Marathon Oil, is its stock price multiplied by the total number of shares outstanding, calculating Marathon Oil's enterprise value requires a different approach. It uses Marathon Oil's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is expected to rise to about 2.1 B this year. Enterprise Value is expected to rise to about 16 B this year.
Marathon Oil secures a last-minute Real Value of $22.48 per share. The latest price of the firm is $28.31. At this time, the firm appears to be overvalued. Our model forecasts the value of Marathon Oil from analyzing the firm fundamentals such as Return On Equity of 0.34 %, current valuation of 20.32 B, and Profit Margin of 0.49 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend picking up undervalued stocks and discarding overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Marathon Oil 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 Marathon Oil's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Marathon Most Recent Valuation Data

Dividend Share
0.32
Beta
2.4566
Change Receivables
-389 M
Fiscal Year End
December
Property Plant And Equipment Net
14.5 B
Overvalued
Today 28.31
Please note that Marathon Oil's price fluctuation is not too volatile at this time. Calculation of the real value of Marathon Oil is based on 3 months time horizon. Increasing Marathon Oil's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Marathon Oil is useful when determining the fair value of the Marathon stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Marathon Oil. Since Marathon Oil is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Marathon Stock. However, Marathon Oil'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.
22.48
Real Value
31.37
Upside
Estimating the potential upside or downside of Marathon Oil helps investors to forecast how Marathon 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 Marathon Oil more accurately as focusing exclusively on Marathon Oil's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
26.4028.1229.85
Details
Hype
Prediction
LowEstimated ValueHigh
26.0128.5131.01
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.160.170.17
Details
17 Analysts
Consensus
LowTarget PriceHigh
15.0020.7527.00
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 Marathon Oil's intrinsic value based on its ongoing forecasts of Marathon Oil's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Marathon Oil's closest peers. When choosing an evaluation method for Marathon Oil, 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.

Marathon Oil Investments

626.94 Million

Marathon Valuation Drivers Correlation

Many accounts on the financial statements of Marathon Oil are highly interrelated and sometimes correlated. Consequently, when conducting Marathon'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 Marathon
Click cells to compare fundamentals

Marathon Valuation Trend

Knowing Marathon Oil's actual value is paramount for traders to make sound investment determinations. Marathon Oil's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Marathon Oil's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Marathon Oil'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.

Marathon Market Cap

Marathon Oil is considered to be number one stock in market capitalization category among related companies. Market capitalization of Energy industry is now estimated at about 35.43 Billion. Marathon Oil totals roughly 18.26 Billion in market capitalization claiming about 52% of equities under Energy industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Marathon Oil Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Marathon Oil's current stock value. Our valuation model uses many indicators to compare Marathon Oil value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marathon Oil competition to find correlations between indicators driving Marathon Oil's intrinsic value. More Info.
Marathon Oil is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in net asset category among related companies making up about  10,897,781,198  of Net Asset per Price to Book. Average Assets is expected to rise to about 20.2 B this year. Tangible Asset Value is expected to rise to about 19.4 B this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Marathon Oil by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Marathon Oil'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 Marathon Oil'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 Marathon Oil'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 Marathon Oil and how it compares across the competition.

About Marathon Oil Valuation

The stock valuation mechanism determines the current worth of Marathon Oil on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Marathon Oil. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marathon Oil based exclusively on its fundamental and basic technical indicators. By analyzing Marathon Oil'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 Marathon Oil'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 Marathon Oil. We calculate exposure to Marathon Oil's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Marathon Oil's related companies.
Fiscal Year End
December
Industry
Oil & Gas E&P
Concentration
Oil & Gas Exploration & Production
Full Time Employees
1.5 K
Service Category
Oil, Gas & Consumable Fuels
Last ReportedProjected for 2023
Gross Profit3.8 B4.1 B
Profit Margin 19.90  21.47 
Marathon Oil's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Marathon Oil's value is low or high relative to the company's performance and growth projections. Determining the market value of Marathon Oil can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Marathon Oil represents a small ownership stake in the entity. As a stockholder of Marathon, 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.

Marathon Oil Dividends Analysis For Valuation

Dividend Yield is expected to rise to 0.0139 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (175 M). . Marathon Oil Accumulated Retained Earnings Deficit are quite stable at the moment as compared to the past year. The company's current value of Accumulated Retained Earnings Deficit is estimated at 8.16 Billion. Earnings per Basic Share is expected to rise to 1.49 this year, although the value of Earning Before Interest and Taxes EBIT will most likely fall to about 972.4 M.
Last ReportedProjected for 2023
Payment of Dividends and Other Cash Distributions-162.2 M-175 M
Dividend Yield 0.0099  0.0139 
Dividends per Basic Common Share 0.16  0.16 
There are various types of dividends Marathon Oil 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 Marathon 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 Marathon Oil directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Marathon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Marathon Oil by the value of the dividends paid out.

Marathon Oil 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 Marathon Oil 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.
Quarterly Earnings Growth Y O Y4.302

Marathon Oil Current Valuation Indicators

Valuation refers to the process of determining the present value of Marathon Oil and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Marathon we look at many different elements of the entity such as Marathon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Marathon Oil'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 Marathon Oil'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 Marathon Oil, 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 Marathon Oil'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 Marathon Oil's worth.
Additionally, see Correlation Analysis. You can also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for analysis

When running Marathon Oil price analysis, check to measure Marathon Oil'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 Marathon Oil is operating at the current time. Most of Marathon Oil's value examination focuses on studying past and present price action to predict the probability of Marathon Oil's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Marathon Oil's price. Additionally, you may evaluate how the addition of Marathon Oil to your portfolios can decrease your overall portfolio volatility.
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Is Marathon Oil'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 Marathon Oil. If investors know Marathon 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 Marathon Oil 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
4.302
Market Capitalization
18.3 B
Quarterly Revenue Growth
0.4
Return On Assets
0.1255
Return On Equity
0.3399
The market value of Marathon Oil is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Oil's value that differs from its market value or its book value, called intrinsic value, which is Marathon Oil'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 Marathon Oil's market value can be influenced by many factors that don't directly affect Marathon Oil'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 Marathon Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine Marathon Oil value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marathon Oil'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.