1. Stock Valuation of
Exxon Mobil (XOM)
Justin Price

2. Exxon Mobil (XOM)
• World’s largest publicly traded international oil and gas company
• World’s largest refiner and marketer of petroleum products
• Earnings totaled $32.4 billion for 2014

3. Stock Valuation
• The process of calculating the fair market value of a stock by using predetermined
formulas that factors in various economic indicators.
• Fundamental analysis
• Technical analysis
• Relevant to our class because we are currently calculating stock valuations
• Methods of valuing stock give additional insight into valuation process
• No wrong or right method to choose

4. Stock Valuation of Exxon Mobil
• Undervalued stock
• Average earnings over the past 10 years displays earning power
• Earnings growth depends on rising demand and use of oil globally
• Paid increasing dividends for 32 consecutive years
• Consider upward trend in purchase of electric cars
• Analyze crude oil prices

5. Why is stock valuation important?
• Understanding the volatility of stock can help shareholders avoid losses
• Accuracy of a firm’s stock price can offer huge benefits to shareholders if
valuation is done properly

6. Implications? Recommendations?
• Many factors have to be taken into account when valuing stock
• Using two methods of analysis provides more accuracy for future stock
prices
• Recommend using a fundamental and technical analysis so stock can be
valued most effectively