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Is Occidental Petroleum (OXY) Pricing In Too Much Optimism After Its Strong 1 Year Rally?
Occidental Petroleum (OXY) has seen significant gains over the last year, prompting an analysis of its valuation. While a Discounted Cash Flow (DCF) model suggests the stock is undervalued by 45.5% with an estimated intrinsic value of $115.62 per share, its Price-to-Earnings (P/E) ratio of 46.25x is considerably higher than industry and peer averages, indicating it might be overvalued by this metric. The article also presents “Narratives” for both bullish and bearish cases, highlighting different investor assumptions that lead to varied fair value estimates for OXY.