Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.05%, lower than industry average of 9.02%.

Growth Trajectory

Profitability

In the growth phase company makes 11.82% profit on every dollar of sales, lower than industry average of 17.41%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.23% 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
223.41B USD
Equity Value
188.29B USD
FCF Yield
259.57%
Average ROIC
25.27%
Cost of Capital
8.44%
P/E Ratio
11.65x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues133.56B USD138.86B USD
Operating Income or EBIT5.65B USD7.29B USD
Interest Expense1.35B USD1.31B USD
Book Value Of Equity16.62B USD17.75B USD
Book Value Of Debt30.04B USD28.76B USD
Cash and Marketable Securities1.67B USD3.21B USD
Number of Shares Outstanding304M--
Minority interests6.76B USD0 USD
Current Stock Price184.08 USD--
Effective Tax Rate15.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-12.84%
-3.82%Company
vs
9.01%Industry
Below Industry
Operating Margin
-13.18%
4.23%Company
vs
17.40%Industry
Below Industry
Marathon Petroleum Corporation faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.82%
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) 143.14B USD Add
Present Value (Cash Flow Over Next 10 Years) 80.26B USD Add
Value of Operating Assets 223.41B USD Sub-total
Debt 30.03B USD Subtract
Minority Interests 6.76B USD Subtract
Cash 1.67B USD Add
Value of Equity 188.29B USD Sub-total
Number of Shares 304.00M shares Divisor
Estimated Value per Share (Fair Value) 619.37 USD Total
Current Market Price 184.08 USD Reference

Financial Projections

Total FCF Present Value
80.26B USD
Avg Revenue Growth
4.42%
Avg Operating Margin
13.50%
Avg ROIC
25.27%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue131.39B USD139.34B USD147.77B USD156.71B USD166.19B USD175.76B USD185.38B USD194.98B USD204.51B USD213.92B USD223.76B USD
Growth Rate -1.62% 6.04% 6.04% 6.04% 6.04% 5.75% 5.46% 5.17% 4.88% 4.59% 4.59%
PROFITABILITY
Operating Income5.55B USD12.94B USD17.47B USD22.49B USD28.05B USD29.67B USD31.29B USD32.91B USD34.52B USD36.11B USD37.77B USD
Operating Margin 4.23% 9.29% 11.82% 14.35% 16.88% 16.88% 16.88% 16.88% 16.88% 16.88% 16.88%
EBIT (1-tax)4.72B USD11.00B USD14.84B USD19.11B USD23.85B USD24.63B USD25.35B USD26.00B USD26.58B USD27.08B USD28.33B USD
CASH FLOW
Reinvestment4.05B USD4.29B USD4.55B USD4.83B USD4.87B USD9.79B USD9.78B USD9.71B USD9.58B USD10.02B USD14.76B USD
Free Cash Flow674.31M USD6.70B USD10.29B USD14.28B USD18.97B USD14.83B USD15.56B USD16.29B USD17.00B USD17.06B USD13.57B USD
Terminal Value--------------------320.89B USD
Present Value623.06M USD5.72B USD8.12B USD10.41B USD12.77B USD9.22B USD8.92B USD8.59B USD8.25B USD7.61B USD—
EFFICIENCY
ROIC 10.50% 22.44% 27.84% 33.02% 38.02% 36.43% 32.75% 29.83% 27.43% 25.43% 8.82%
Cost of Capital 8.22% 8.22% 8.22% 8.22% 8.22% 8.34% 8.46% 8.58% 8.70% 8.82% 8.83%
Sales/Capital 1.96x 1.96x 1.96x 1.96x 1.96x 0.98x 0.98x 0.98x 0.98x 0.98x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

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