Stock Valuation of Exxon Mobil

(XOM)Justin Price

Exxon Mobil (XOM)

• World’s largest publicly traded international oil and gas company

• World’s largest refiner and marketer of petroleum products

• Earnings totaled $32.4 billion for 2014

Stock Valuation• The process of calculating the fair market value of a stock by using

predetermined formulas that factors in various economic indicators.• Fundamental analysis• Technical analysis• Relevant to our class because we are currently calculating stock

valuations• Methods of valuing stock give additional insight into valuation process• No wrong or right method to choose

Stock Valuation of Exxon Mobil

• Undervalued stock• Average earnings over the past 10 years displays earning

power• Earnings growth depends on rising demand and use of oil

globally• Paid increasing dividends for 32 consecutive years• Consider upward trend in purchase of electric cars• Analyze crude oil prices

Why is stock valuation important?

• Understanding the volatility of stock can help shareholders avoid losses

• Accuracy of a firm’s stock price can offer huge benefits to shareholders if valuation is done properly

Implications? Recommendations?

• Many factors have to be taken into account when valuing stock

• Using two methods of analysis provides more accuracy for future stock prices

• Recommend using a fundamental and technical analysis so stock can be valued most effectively