Questions On Stock Valuation Of Different Companies

In utilizing the fundamental data provided by the 2010 Richard Ivey School of Business Foundation article titled Valuing Wal-Mart - 2010, I have made the following conclusions regarding the value of Wal-Mart (WMT) stock as of February 2012.

BP is best known as a global leader providing oil and gas to customers. They also produce lubricants for use with engines and

Currently headquartered in London, BP is one of the largest producers of both oil and natural gas. BP provides its customers with fuel for transportation and energy for heat and light. BP’s core business is gas exploration and production division and their main sources of production include Angola, Argentina, Australia, Azerbaijan, Egypt, Trinidad, the United Arab Emirates, the United Kingdom and the United States (BP PLC (BP) Company Profile | Reuters.com. (n.d.). Retrieved October 27, 2015.). In 2013, BP produced 628,000 barrels of oil each day in the US and was the sixth largest producer of natural gas. Each day, BP sells 50 million gallons of fuel in the US consisting of 7,500 BP branded locations located in 13 states. BP is always seeking new opportunities for advancement in technology so that their operation is safer and more efficient. The company is leading the way in in the energy industry with the world’s largest supercomputer used for commercial research, located in Houston and also the first to use drones in the United States. To further place themselves ahead in the industry, BP has invested over $160 million in 2 dozen companies for advancements in technology. BP currently has 17,000 employees and on average, donates approximately $30 million each year to community

BP is the third largest multi-national company 's energy companies. It specializes in oil; natural gas and alternative fuels, such as electricity and renewable energy. BP also and Chemicals, Marketing and refining them in the industry very competitive player. BP has changed: from the development of the local oil company into a global energy group, employing over 96,000 people and operates in more than 100 countries worldwide. BP believes that sustainable growth and corporate social responsibility has been included but it is whether CSR has actually been realized yet been established, or if it ISA

The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.

BP’s story began in 1901 when a man named William D’Arcy invested in oil under Persia’s sand. He soon realized he made a huge mistake, but he never gave up and ended up flourishing after

Most rely on valuation heuristics involving P/E, PEG, and price-to-sales . The simplicity of using heuristic triggers dependence on valuation heuristics as an alternative for the fundamental valuation. P/E, PEG, and price-to-sales need few variables and use simple formulas. Therefore , the estimates are rather perceptive THUS subject to bias. The cause of these biases arise from weak assumption made towards P/E, PEG, and price-to-sales inputs.

BP tends to make bets that others don’t which is most likely why the disastrous deep water horizon oil spill occurred in the Gulf of Mexico five years ago. The fire burned for 36 hours while hydrocarbons leaked into the gulf before the well was sealed, unfortunately eleven individuals died. It has been difficult for BP to be the best company right now since this falling and they have been in reparation mode since this catastrophe. However, BP is now incorporating high safety and showed everyone that they are very reliable on the recovery of this hardship of BP trying to mix oil with water. BP came together to control the situation, cleanup, and diminish as much contamination as possible into the gulf. In addition, they are devoted long term to improve the Gulf of Mexico’s bionetwork and promise to be more careful so this will not happen again.

The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. This reputation is even more critical when a business has is known globally with holdings and operations around the world. Such is the case with British Petroleum (BP) as it actively explores for oil in 26 countries around the world. BP is renowned as an industry leader in oil production and the refinement of oil related products such as gasoline, kerosene and motor oil products. In 1999, BP acquired American Oil Company, also

Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user’s decisions.

Since BP is the world top three of gasoline industry with its great brand loyalty for oil, the company has its internal strengths. On the one hand, BP dominated a strong market position. Datamonitor (2010) pointed out that BP is one of the world’s largest manufacturer of oil and hydrocarbons in the UK and the second largest producer of gas. Meanwhile, in North America, BP is also the largest creator of oil and gas. Moreover, BP also occupies a large market share. BP Air, a supplier of aviation fuels, has become a world largest brand of the global aviation business .On the other hand, the company has a wide geographic presence. It is reported that BP has a presence in almost 80 countries through the whole world such as Middle China, Europe and the United States (datamonitor, 2010). Therefore, the company has a wide range of customers that can make the profits stay stable.

British petroleum (BP) is one of the seven super major oil company in the world. BP are the fourth largest gas and oil company in the world. BP has a hand in every aspect of the oil business from exploring for new oil to marketing and distribution. BP originally started as the Anglo-Persian Oil Company in 1908, established as a subsidiary of Burmah Oil Company. The Burmah Oil Company. Would capitalize on discoveries they made in Iran and the middle east. The company would take its current name as British a petroleum in 1954. The company slowly started to expand from their roots in the middle east. BP chose to expand to Alaska in 1965. BP would continue their expansion in America when the gain the majority control of Standard Oil of Ohio in 1978. Also during the time BP would continue their ongoing exploration for new sources of oil. They became the first company to strike oil in the North Sea. The British government gradually privatized Standard Oil of Ohio for 1978-1987. In the last half of the 20th and the beginning of the 21st century BP took two major steps to expand their company. BP first major expansion occurred when they partnered with Amoco during this time they also acquired and absorbed Burmah Castrol in 2000. Also for 2003 to 2013 BP had a joint partnership with the oil company TNK of Russia. BP tireless effort towards expansion have made them highly successful and one of the top four oil and gas companies in the world. BP turned a profit of 6.48 billon U.S.

The BP operations are spread across the world. It carries out its oil prospecting and extraction operations in 29 countries and retails its products in more than 70 countries. It currently employs a total of 79,700 employees over the globe and its international headquarter is located in London (BP p.l.c. 2012b). Detailed company particulars and operating information are attached at the Appendix A. For this report, we will be focusing on the current issues that BP faces, analysis of its financial performance and lastly, valuating its shares with the use of various valuation models.

The oil spill undermines the reputation and market position of British Petroleum, thus its stock prices decline dramatically. Even though BP took measures for resolving these problems, its way was not beneficial enough and therefore, it still requires more advantageous resolutions.

The planning function at BP starts with the same base strategy. Essentially, planning begins with seeking out new sources of oil and then planning how to extract