Intrinsic value of Marathon Oil - MRO

Previous Close

$19.28

  Intrinsic Value

$5.09

stock screener

  Rating & Target

str. sell

-74%

Previous close

$19.28

 
Intrinsic value

$5.09

 
Up/down potential

-74%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of MRO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -25.78
  30.80
  28.22
  25.90
  23.81
  21.93
  20.23
  18.71
  17.34
  16.11
  15.00
  14.00
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
Revenue, $m
  4,261
  5,573
  7,146
  8,997
  11,139
  13,581
  16,330
  19,385
  22,746
  26,410
  30,370
  34,621
  39,155
  43,966
  49,047
  54,394
  60,004
  65,872
  72,000
  78,389
  85,040
  91,959
  99,153
  106,630
  114,400
  122,474
  130,866
  139,591
  148,665
  158,106
  167,932
Variable operating expenses, $m
 
  8,184
  10,490
  13,204
  16,345
  19,926
  23,956
  28,436
  33,365
  38,736
  44,543
  50,764
  57,413
  64,467
  71,918
  79,759
  87,983
  96,589
  105,574
  114,941
  124,694
  134,840
  145,389
  156,352
  167,745
  179,584
  191,890
  204,683
  217,988
  231,831
  246,239
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  5,161
  8,184
  10,490
  13,204
  16,345
  19,926
  23,956
  28,436
  33,365
  38,736
  44,543
  50,764
  57,413
  64,467
  71,918
  79,759
  87,983
  96,589
  105,574
  114,941
  124,694
  134,840
  145,389
  156,352
  167,745
  179,584
  191,890
  204,683
  217,988
  231,831
  246,239
Operating income, $m
  -900
  -2,610
  -3,344
  -4,207
  -5,206
  -6,345
  -7,626
  -9,051
  -10,618
  -12,326
  -14,173
  -16,144
  -18,258
  -20,501
  -22,871
  -25,364
  -27,980
  -30,716
  -33,574
  -36,553
  -39,654
  -42,881
  -46,235
  -49,722
  -53,345
  -57,110
  -61,023
  -65,092
  -69,323
  -73,725
  -78,307
EBITDA, $m
  1,495
  -2,599
  -3,332
  -4,195
  -5,194
  -6,333
  -7,614
  -9,039
  -10,607
  -12,315
  -14,162
  -16,144
  -18,258
  -20,501
  -22,871
  -25,364
  -27,980
  -30,716
  -33,574
  -36,553
  -39,654
  -42,881
  -46,235
  -49,722
  -53,345
  -57,110
  -61,023
  -65,092
  -69,323
  -73,725
  -78,307
Interest expense (income), $m
  375
  342
  548
  795
  1,086
  1,422
  1,806
  2,238
  2,717
  3,245
  3,821
  4,443
  5,110
  5,822
  6,578
  7,376
  8,216
  9,097
  10,018
  10,981
  11,984
  13,028
  14,115
  15,245
  16,419
  17,639
  18,907
  20,225
  21,596
  23,021
  24,503
Earnings before tax, $m
  -1,235
  -2,953
  -3,892
  -5,002
  -6,292
  -7,767
  -9,432
  -11,288
  -13,336
  -15,572
  -17,994
  -20,586
  -23,368
  -26,324
  -29,449
  -32,740
  -36,195
  -39,813
  -43,592
  -47,533
  -51,638
  -55,909
  -60,350
  -64,967
  -69,764
  -74,749
  -79,931
  -85,317
  -90,918
  -96,745
  -102,810
Tax expense, $m
  905
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -2,140
  -2,953
  -3,892
  -5,002
  -6,292
  -7,767
  -9,432
  -11,288
  -13,336
  -15,572
  -17,994
  -20,586
  -23,368
  -26,324
  -29,449
  -32,740
  -36,195
  -39,813
  -43,592
  -47,533
  -51,638
  -55,909
  -60,350
  -64,967
  -69,764
  -74,749
  -79,931
  -85,317
  -90,918
  -96,745
  -102,810

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,488
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  31,094
  37,405
  47,961
  60,382
  74,758
  91,150
  109,594
  130,101
  152,660
  177,248
  203,827
  232,354
  262,784
  295,071
  329,176
  365,063
  402,709
  442,097
  483,224
  526,097
  570,738
  617,177
  665,459
  715,639
  767,785
  821,975
  878,298
  936,854
  997,752
  1,061,112
  1,127,062
Adjusted assets (=assets-cash), $m
  28,606
  37,405
  47,961
  60,382
  74,758
  91,150
  109,594
  130,101
  152,660
  177,248
  203,827
  232,354
  262,784
  295,071
  329,176
  365,063
  402,709
  442,097
  483,224
  526,097
  570,738
  617,177
  665,459
  715,639
  767,785
  821,975
  878,298
  936,854
  997,752
  1,061,112
  1,127,062
Revenue / Adjusted assets
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
  0.149
Average production assets, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Working capital, $m
  1,425
  -490
  -629
  -792
  -980
  -1,195
  -1,437
  -1,706
  -2,002
  -2,324
  -2,673
  -3,047
  -3,446
  -3,869
  -4,316
  -4,787
  -5,280
  -5,797
  -6,336
  -6,898
  -7,484
  -8,092
  -8,725
  -9,383
  -10,067
  -10,778
  -11,516
  -12,284
  -13,083
  -13,913
  -14,778
Total debt, $m
  7,267
  10,546
  15,296
  20,886
  27,355
  34,732
  43,031
  52,259
  62,411
  73,475
  85,436
  98,273
  111,967
  126,496
  141,843
  157,993
  174,933
  192,658
  211,165
  230,458
  250,546
  271,444
  293,170
  315,752
  339,217
  363,603
  388,948
  415,298
  442,703
  471,214
  500,892
Total liabilities, $m
  13,553
  16,832
  21,582
  27,172
  33,641
  41,018
  49,317
  58,545
  68,697
  79,761
  91,722
  104,559
  118,253
  132,782
  148,129
  164,279
  181,219
  198,944
  217,451
  236,744
  256,832
  277,730
  299,456
  322,038
  345,503
  369,889
  395,234
  421,584
  448,989
  477,500
  507,178
Total equity, $m
  17,541
  20,573
  26,379
  33,210
  41,117
  50,133
  60,277
  71,555
  83,963
  97,486
  112,105
  127,795
  144,531
  162,289
  181,047
  200,785
  221,490
  243,153
  265,773
  289,354
  313,906
  339,447
  366,002
  393,602
  422,282
  452,086
  483,064
  515,270
  548,764
  583,612
  619,884
Total liabilities and equity, $m
  31,094
  37,405
  47,961
  60,382
  74,758
  91,151
  109,594
  130,100
  152,660
  177,247
  203,827
  232,354
  262,784
  295,071
  329,176
  365,064
  402,709
  442,097
  483,224
  526,098
  570,738
  617,177
  665,458
  715,640
  767,785
  821,975
  878,298
  936,854
  997,753
  1,061,112
  1,127,062
Debt-to-equity ratio
  0.414
  0.510
  0.580
  0.630
  0.670
  0.690
  0.710
  0.730
  0.740
  0.750
  0.760
  0.770
  0.770
  0.780
  0.780
  0.790
  0.790
  0.790
  0.790
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.810
  0.810
  0.810
  0.810
  0.810
Adjusted equity ratio
  0.526
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,140
  -2,953
  -3,892
  -5,002
  -6,292
  -7,767
  -9,432
  -11,288
  -13,336
  -15,572
  -17,994
  -20,586
  -23,368
  -26,324
  -29,449
  -32,740
  -36,195
  -39,813
  -43,592
  -47,533
  -51,638
  -55,909
  -60,350
  -64,967
  -69,764
  -74,749
  -79,931
  -85,317
  -90,918
  -96,745
  -102,810
Depreciation, amort., depletion, $m
  2,395
  12
  12
  12
  12
  12
  12
  12
  12
  12
  12
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  989
  -2,941
  -3,881
  -4,991
  -6,280
  -7,755
  -9,421
  -11,277
  -13,324
  -15,560
  -17,982
  -20,586
  -23,368
  -26,324
  -29,449
  -32,740
  -36,195
  -39,813
  -43,592
  -47,533
  -51,638
  -55,909
  -60,350
  -64,967
  -69,764
  -74,749
  -79,931
  -85,317
  -90,918
  -96,745
  -102,810
Change in working capital, $m
  -84
  -115
  -138
  -163
  -188
  -215
  -242
  -269
  -296
  -322
  -349
  -374
  -399
  -423
  -447
  -471
  -494
  -516
  -539
  -562
  -585
  -609
  -633
  -658
  -684
  -711
  -739
  -768
  -798
  -831
  -865
Cash from operations, $m
  1,073
  -2,826
  -3,742
  -4,828
  -6,092
  -7,541
  -9,179
  -11,008
  -13,028
  -15,238
  -17,634
  -20,212
  -22,969
  -25,900
  -29,001
  -32,269
  -35,702
  -39,296
  -43,053
  -46,971
  -51,053
  -55,300
  -59,717
  -64,309
  -69,080
  -74,039
  -79,192
  -84,549
  -90,120
  -95,915
  -101,945
Maintenance CAPEX, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
New CAPEX, $m
  -1,245
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from investing activities, $m
  -874
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Free cash flow, $m
  199
  -2,826
  -3,742
  -4,828
  -6,092
  -7,541
  -9,179
  -11,008
  -13,028
  -15,238
  -17,634
  -20,212
  -22,969
  -25,900
  -29,001
  -32,269
  -35,702
  -39,296
  -43,053
  -46,971
  -51,053
  -55,300
  -59,717
  -64,309
  -69,080
  -74,039
  -79,192
  -84,549
  -90,120
  -95,915
  -101,945
Issuance/(repayment) of debt, $m
  -1
  3,965
  4,750
  5,589
  6,469
  7,377
  8,300
  9,228
  10,152
  11,064
  11,961
  12,837
  13,693
  14,529
  15,347
  16,149
  16,940
  17,725
  18,507
  19,293
  20,088
  20,898
  21,727
  22,581
  23,466
  24,386
  25,345
  26,350
  27,404
  28,512
  29,678
Issuance/(repurchase) of shares, $m
  1,236
  7,786
  9,698
  11,834
  14,198
  16,783
  19,576
  22,567
  25,743
  29,095
  32,612
  36,276
  40,105
  44,082
  48,206
  52,478
  56,900
  61,476
  66,212
  71,114
  76,190
  81,451
  86,905
  92,566
  98,444
  104,554
  110,908
  117,523
  124,412
  131,593
  139,083
Cash from financing (excl. dividends), $m  
  1,236
  11,751
  14,448
  17,423
  20,667
  24,160
  27,876
  31,795
  35,895
  40,159
  44,573
  49,113
  53,798
  58,611
  63,553
  68,627
  73,840
  79,201
  84,719
  90,407
  96,278
  102,349
  108,632
  115,147
  121,910
  128,940
  136,253
  143,873
  151,816
  160,105
  168,761
Total cash flow (excl. dividends), $m
  1,431
  8,926
  10,706
  12,595
  14,576
  16,619
  18,697
  20,787
  22,867
  24,921
  26,939
  28,901
  30,829
  32,711
  34,552
  36,358
  38,139
  39,905
  41,666
  43,436
  45,226
  47,048
  48,915
  50,838
  52,830
  54,901
  57,062
  59,324
  61,696
  64,190
  66,815
Retained Cash Flow (-), $m
  1,012
  -7,786
  -9,698
  -11,834
  -14,198
  -16,783
  -19,576
  -22,567
  -25,743
  -29,095
  -32,612
  -36,276
  -40,105
  -44,082
  -48,206
  -52,478
  -56,900
  -61,476
  -66,212
  -71,114
  -76,190
  -81,451
  -86,905
  -92,566
  -98,444
  -104,554
  -110,908
  -117,523
  -124,412
  -131,593
  -139,083
Prev. year cash balance distribution, $m
 
  1,802
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,942
  1,008
  762
  377
  -164
  -879
  -1,780
  -2,877
  -4,174
  -5,673
  -7,375
  -9,276
  -11,371
  -13,654
  -16,120
  -18,761
  -21,572
  -24,546
  -27,678
  -30,965
  -34,403
  -37,991
  -41,728
  -45,614
  -49,653
  -53,847
  -58,199
  -62,716
  -67,403
  -72,268
Discount rate, %
 
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
 
  2,786
  899
  636
  294
  -118
  -581
  -1,073
  -1,568
  -2,041
  -2,466
  -2,823
  -3,095
  -3,272
  -3,349
  -3,330
  -3,221
  -3,037
  -2,792
  -2,505
  -2,194
  -1,876
  -1,565
  -1,274
  -1,011
  -782
  -589
  -432
  -308
  -213
  -143
Current shareholders' claim on cash, %
  100
  65.6
  43.7
  29.6
  20.3
  14.2
  10.0
  7.2
  5.2
  3.8
  2.8
  2.1
  1.6
  1.2
  0.9
  0.7
  0.5
  0.4
  0.3
  0.2
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0

Marathon Oil Corporation is an exploration and production (E&P) company. The Company operates through three segments: North America E&P, International E&P and Oil Sands Mining. The North America E&P segment explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America. The International E&P segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and produces and markets products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, in Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.

FINANCIAL RATIOS  of  Marathon Oil (MRO)

Valuation Ratios
P/E Ratio -7.6
Price to Sales 3.8
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 15.2
Price to Free Cash Flow -94.9
Growth Rates
Sales Growth Rate -25.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -64.2%
Cap. Spend. - 3 Yr. Gr. Rate -22.5%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 37.5%
Total Debt to Equity 41.4%
Interest Coverage -2
Management Effectiveness
Return On Assets -4.7%
Ret/ On Assets - 3 Yr. Avg. -0.5%
Return On Total Capital -8.5%
Ret/ On T. Cap. - 3 Yr. Avg. -1.8%
Return On Equity -11.9%
Return On Equity - 3 Yr. Avg. -2.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 62.6%
Gross Margin - 3 Yr. Avg. 61.6%
EBITDA Margin 36%
EBITDA Margin - 3 Yr. Avg. 27.1%
Operating Margin -21.1%
Oper. Margin - 3 Yr. Avg. -18%
Pre-Tax Margin -29%
Pre-Tax Margin - 3 Yr. Avg. -22.8%
Net Profit Margin -50.2%
Net Profit Margin - 3 Yr. Avg. -20.6%
Effective Tax Rate -73.3%
Eff/ Tax Rate - 3 Yr. Avg. -6.3%
Payout Ratio -7.6%

MRO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MRO stock intrinsic value calculation we used $4261 million for the last fiscal year's total revenue generated by Marathon Oil. The default revenue input number comes from 2016 income statement of Marathon Oil. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MRO stock valuation model: a) initial revenue growth rate of 30.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.6%, whose default value for MRO is calculated based on our internal credit rating of Marathon Oil, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Marathon Oil.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MRO stock the variable cost ratio is equal to 146.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MRO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.2% for Marathon Oil.

Corporate tax rate of 27% is the nominal tax rate for Marathon Oil. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MRO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MRO are equal to 0%.

Life of production assets of 0 years is the average useful life of capital assets used in Marathon Oil operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MRO is equal to -8.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $17541 million for Marathon Oil - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 856.468 million for Marathon Oil is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Marathon Oil at the current share price and the inputted number of shares is $16.5 billion.

RELATED COMPANIES Price Int.Val. Rating
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APC Anadarko Petro 60.72 5.57  str.sell
HES Hess Corp. 53.47 10.93  str.sell
TOT Total ADR 58.86 9.69  str.sell
XOM Exxon Mobil 88.25 22.27  str.sell
MUR Murphy Oil 34.68 6.99  str.sell

COMPANY NEWS

▶ Bulls betting on Marathon Oil and this steel stock   [Jan-17-18 01:47PM  CNBC Videos]
▶ US stocks brush off first wobble of the year to climb again   [Jan-11-18 12:59PM  Associated Press]
▶ Is This The Beginning Of An Oil Sands Revival?   [Jan-06-18 11:00AM  Oilprice.com]
▶ The Biggest Loser: Range Resources Drops 3.7%   [Jan-05-18 04:44PM  Barrons.com]
▶ Oil Prices: Is It Really All Down Hill From Here?   [Jan-04-18 10:32AM  Motley Fool]
▶ Where ConocoPhillips Stock Could Settle This Week   [Jan-03-18 10:33AM  Market Realist]
▶ This oil analyst looks ahead to 2018   [Dec-26-17 04:38PM  CNBC Videos]
▶ Shale Growth Hides Underlying Problems   [Dec-24-17 03:00PM  Oilprice.com]
▶ Analyzing Wall Street Targets for COP, MRO, MUR, DVN and EQT   [Dec-22-17 10:32AM  Market Realist]
▶ Will the Marginal Drop in Crude Oil Prices Hit Coal Miners?   [Dec-20-17 05:20PM  Market Realist]
▶ Marathon Oil Earns Relative Strength Rating Upgrade   [Dec-19-17 03:00AM  Investor's Business Daily]
▶ Where ConocoPhillipss Stock Could Settle this Week   [Dec-18-17 04:15PM  Market Realist]
▶ Are Coal Miners Impacted by a Fall in Crude Oil Prices?   [Dec-14-17 12:54PM  Market Realist]
▶ How ConocoPhillips Lowered Its Debt in 2017   [12:47PM  Market Realist]
▶ Why Marathon Oil Increased despite Falling Crude Oil Prices   [Dec-12-17 03:30PM  Market Realist]
▶ Marathon Oil Earns IBD Rating Upgrade   [Dec-11-17 03:00AM  Investor's Business Daily]
▶ Are Coal Miners Impacted by Volatility in Crude Oil Prices?   [Dec-06-17 04:35PM  Market Realist]
▶ 3 Energy Stocks That Are Blazing a Trail   [11:21AM  InvestorPlace]
▶ Some Oil & Gas Stock Picks Post-OPEC Meeting   [Nov-30-17 05:30PM  Forbes]
▶ Whats Marathon Oils Trading Range Forecast for This Week?   [Nov-29-17 01:05PM  Market Realist]
▶ Marathon Oil Announces $1 Billion Gross Debt Reduction   [Nov-28-17 04:50PM  GlobeNewswire]
▶ Cramer's biggest investing mistakes   [Nov-27-17 07:10PM  CNBC Videos]
▶ Marathon Oils Possible Trading Range for Thanksgiving Week   [Nov-23-17 10:31AM  Market Realist]
▶ Analyzing Marathon Oil in the Recent Rally   [07:31AM  Market Realist]
▶ How Lower Crude Oil Prices Could Affect Coal Miners   [Nov-22-17 12:15PM  Market Realist]
▶ Is Marathon Oils Dividend Increasing?   [10:32AM  Market Realist]
▶ 3 Top Oil Stocks to Buy Right Now   [Nov-21-17 06:00AM  Motley Fool]
▶ Cavium and Alibaba rise while Merck and Marathon Oil fall   [Nov-20-17 04:41PM  Associated Press]
▶ How the Dividend Cut Affected MROs Dividend Yield   [Nov-17-17 09:00AM  Market Realist]
▶ Analyzing MRO, a Low Dividend Grower   [07:30AM  Market Realist]
▶ Can Rising Crude Oil Prices Affect Coal Miners?   [Nov-16-17 09:03AM  Market Realist]
▶ What Marathon Oils Implied Volatility Says about the Stock   [Nov-14-17 05:10PM  Market Realist]
▶ Marathon Oils Uptrend: Should We Be Worried?   [02:06PM  Market Realist]
Financial statements of MRO
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