Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.65%, lower than industry average of 15.81%.

Growth Trajectory

Profitability

In the growth phase company makes 33.55% profit on every dollar of sales, higher than industry average of 31.59%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.00% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
111.12B USD
Equity Value
111.74B USD
FCF Yield
98.78%
Average ROIC
20.40%
Cost of Capital
7.03%
P/E Ratio
10.43x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues22.71B USD23.38B USD
Operating Income or EBIT7.96B USD8.73B USD
Interest Expense167M USD138M USD
Book Value Of Equity29.24B USD29.35B USD
Book Value Of Debt4.60B USD5.07B USD
Cash and Marketable Securities5.22B USD7.09B USD
Number of Shares Outstanding545.99M--
Minority interests0 USD0 USD
Current Stock Price118.61 USD--
Effective Tax Rate22.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-18.66%
-2.85%Company
vs
15.81%Industry
Below Industry
Operating Margin
+3.44%
35.03%Company
vs
31.59%Industry
Above Industry
EOG Resources, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 64% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 70.96B USD Add
Present Value (Cash Flow Over Next 10 Years) 40.16B USD Add
Value of Operating Assets 111.12B USD Sub-total
Debt 4.59B USD Subtract
Minority Interests — Subtract
Cash 5.21B USD Add
Value of Equity 111.74B USD Sub-total
Number of Shares 545.99M shares Divisor
Estimated Value per Share (Fair Value) 204.67 USD Total
Current Market Price 118.60 USD Reference

Financial Projections

Total FCF Present Value
40.16B USD
Avg Revenue Growth
6.79%
Avg Operating Margin
33.21%
Avg ROIC
20.40%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue25.25B USD27.44B USD29.81B USD32.39B USD35.19B USD37.95B USD40.62B USD43.15B USD45.48B USD47.57B USD49.76B USD
Growth Rate 11.21% 8.64% 8.64% 8.64% 8.64% 7.83% 7.02% 6.21% 5.40% 4.59% 4.59%
PROFITABILITY
Operating Income8.85B USD9.34B USD10.00B USD10.70B USD11.45B USD12.35B USD13.22B USD14.04B USD14.80B USD15.48B USD16.20B USD
Operating Margin 35.03% 34.04% 33.54% 33.05% 32.55% 32.55% 32.55% 32.55% 32.55% 32.55% 32.55%
EBIT (1-tax)6.90B USD7.28B USD7.80B USD8.35B USD8.93B USD9.56B USD10.15B USD10.70B USD11.19B USD11.61B USD12.15B USD
CASH FLOW
Reinvestment2.86B USD3.11B USD3.38B USD3.67B USD3.62B USD3.99B USD3.78B USD3.49B USD3.13B USD3.27B USD6.32B USD
Free Cash Flow4.03B USD4.17B USD4.41B USD4.67B USD5.31B USD5.56B USD6.37B USD7.20B USD8.05B USD8.33B USD5.82B USD
Terminal Value--------------------137.60B USD
Present Value3.80B USD3.71B USD3.70B USD3.70B USD3.97B USD3.90B USD4.16B USD4.37B USD4.52B USD4.29B USD—
EFFICIENCY
ROIC 24.12% 23.14% 22.54% 21.98% 21.44% 21.11% 20.60% 20.16% 19.78% 19.45% 8.83%
Cost of Capital 6.00% 6.00% 6.00% 6.00% 6.00% 6.56% 7.13% 7.69% 8.26% 8.83% 8.83%
Sales/Capital 0.76x 0.76x 0.76x 0.76x 0.76x 0.66x 0.66x 0.66x 0.66x 0.66x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)