Current Price
$46.80
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on BP p.l.c. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for BPBP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.
ROIC (TTM)
4.6%
ROE (TTM)
5.5%
FCF Yield
9.52%
Based on trailing twelve-month data, BP shows a free cash flow per share of N/A and a ROIC of 4.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 9.52% are important context metrics when evaluating BP's stock valuation relative to peers.
The intrinsic value of BP depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether BP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $46.80. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on BP p.l.c.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Integrated industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BP's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For BP p.l.c., this means projecting how much free cash flow the Oil & Gas Integrated will produce over the next 5-10 years, then discounting those amounts to today's dollars. BP's ROIC of 4.6% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
