Is occidental undervalued Benjamin graham


Aime
Occidental Petroleum (OXY) appears to be undervalued based on Benjamin Graham's investment principles. Here's an analysis supporting this conclusion:
- Price to Book Ratio: OXY's Price to Book Ratio is 2.21. This indicates that the market values the company at less than the value of its tangible assets, which is a common characteristic of undervalued stocks according to Graham's approach.

- Price to Earnings Ratio: The Price to Earnings (P/E) Ratio is 13.442, which, while not exceptionally low, is still within the range that Graham considered reasonable for undervalued stocks. This ratio suggests that the stock is not overvalued relative to its earnings.

- Price to Sales Ratio: OXY's Price to Sales (P/S) Ratio is 2.033, which is below the industry average and indicates that the stock may be undervalued based on its sales potential.

- Margin of Safety: Graham's concept of investing with a margin of safety involves buying stocks at a significant discount to their intrinsic value. OXY's current valuation metrics suggest that it may be trading at a discount to its intrinsic value, which is a key aspect of being undervalued.
- Historical Performance: The long-term price target for OXY is $75.02 by 20304, representing a significant upside from the current price. This suggests that the stock has the potential for substantial growth over the next few years, which is a characteristic of undervalued stocks that Graham's approach often identifies.
- Analyst Consensus: The average price target from analysts is $63.735, which is above the current price, indicating potential upside. This consensus among analysts is a positive sign for OXY's future performance.
In conclusion, OXY's low P/B ratio, combined with its reasonable P/E ratio and the potential for growth identified by both the long-term price target and analyst consensus, supports the notion that the stock is undervalued. These factors align with Benjamin Graham's investment principles, indicating that the stock may present a good value opportunity for investors.
Source:
1.
OXY P/B Ratio
more
less
Continue this conversation 

Explore
Screener
Analysis
Learn
Wiki