Occidental Petroleum Corporation

LSE:0KAK Stock Report

Market Cap: US$47.8b

Occidental Petroleum Valuation

Is 0KAK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0KAK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0KAK ($51.54) is trading below our estimate of fair value ($86.97)

Significantly Below Fair Value: 0KAK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KAK?

Key metric: As 0KAK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KAK. This is calculated by dividing 0KAK's market cap by their current earnings.
What is 0KAK's PE Ratio?
PE Ratio13.5x
EarningsUS$3.53b
Market CapUS$47.77b

Price to Earnings Ratio vs Peers

How does 0KAK's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
BP. BP
28.4x28.5%UK£59.9b
SHEL Shell
13x5.0%UK£158.5b
ENI Eni
17.6x17.3%€43.1b
HBR Harbour Energy
50.2x14.4%UK£3.7b
0KAK Occidental Petroleum
13.5x8.7%US$47.8b

Price-To-Earnings vs Peers: 0KAK is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (27.3x).

Price to Earnings Ratio vs Industry

How does 0KAK's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
INDI Indus Gas
1xn/aUS$20.12m
No more companies available in this PE range
0KAK 13.5xIndustry Avg. 8.9xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KAK is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the UK Oil and Gas industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is 0KAK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0KAK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: 0KAK is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0KAK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$51.53
US$63.00
+22.3%
13.5%US$89.00US$54.00n/a27
Nov ’25US$49.68
US$64.22
+29.3%
13.3%US$89.00US$54.00n/a27
Oct ’25US$53.25
US$67.88
+27.5%
13.4%US$89.00US$53.00n/a25
Sep ’25US$56.81
US$71.44
+25.8%
11.0%US$89.00US$58.00n/a25
Aug ’25US$58.85
US$71.38
+21.3%
10.1%US$85.00US$53.00n/a24
Jul ’25US$63.00
US$71.65
+13.7%
10.6%US$90.00US$53.00n/a23
Jun ’25US$62.31
US$71.61
+14.9%
10.6%US$90.00US$53.00n/a23
May ’25US$63.74
US$71.54
+12.2%
10.8%US$90.00US$57.00n/a24
Apr ’25US$64.95
US$66.22
+2.0%
7.9%US$77.00US$57.00n/a22
Mar ’25US$61.33
US$65.72
+7.2%
9.2%US$80.00US$56.00n/a22
Feb ’25US$57.36
US$67.20
+17.2%
10.9%US$85.00US$59.00n/a22
Jan ’25US$59.64
US$68.67
+15.1%
10.1%US$85.00US$59.00n/a23
Dec ’24US$59.13
US$70.25
+18.8%
9.5%US$85.00US$60.00n/a24
Nov ’24US$61.66
US$70.32
+14.0%
9.8%US$85.00US$60.00US$49.6825
Oct ’24US$64.90
US$68.92
+6.2%
9.7%US$85.00US$59.00US$53.2525
Sep ’24US$64.78
US$67.50
+4.2%
9.0%US$80.00US$57.00US$56.8124
Aug ’24US$62.40
US$66.42
+6.4%
9.3%US$81.00US$56.00US$58.8524
Jul ’24US$59.35
US$68.00
+14.6%
11.0%US$82.00US$54.00US$63.0024
Jun ’24US$59.01
US$68.96
+16.9%
12.7%US$87.00US$54.00US$62.3124
May ’24US$62.02
US$70.88
+14.3%
14.1%US$93.00US$53.00US$63.7426
Apr ’24US$62.62
US$70.81
+13.1%
13.7%US$93.00US$53.00US$64.9526
Mar ’24US$59.84
US$73.08
+22.1%
12.6%US$93.00US$57.00US$61.3326
Feb ’24US$63.09
US$74.77
+18.5%
13.5%US$100.00US$57.00US$57.3626
Jan ’24US$62.45
US$75.88
+21.5%
13.3%US$100.00US$57.00US$59.6426
Dec ’23US$68.92
US$76.62
+11.2%
13.9%US$100.00US$57.00US$59.1326
Nov ’23US$74.10
US$74.24
+0.2%
19.5%US$110.00US$44.00US$61.6626

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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