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Marathon Oil (Marathon Oil) Cyclically Adjusted Price-to-FCF : 25.95 (As of Apr. 27, 2024)


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What is Marathon Oil Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Marathon Oil's current share price is $27.77. Marathon Oil's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $1.07. Marathon Oil's Cyclically Adjusted Price-to-FCF for today is 25.95.

The historical rank and industry rank for Marathon Oil's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MRO' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 3.84   Med: 18.36   Max: 130.2
Current: 25.99

During the past years, Marathon Oil's highest Cyclically Adjusted Price-to-FCF was 130.20. The lowest was 3.84. And the median was 18.36.

MRO's Cyclically Adjusted Price-to-FCF is ranked worse than
70.92% of 392 companies
in the Oil & Gas industry
Industry Median: 14.585 vs MRO: 25.99

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Marathon Oil's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.209. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $1.07 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Marathon Oil Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Marathon Oil's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Marathon Oil Cyclically Adjusted Price-to-FCF Chart

Marathon Oil Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.95 13.58 83.18 31.78 22.61

Marathon Oil Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.78 27.18 22.96 27.22 22.61

Competitive Comparison of Marathon Oil's Cyclically Adjusted Price-to-FCF

For the Oil & Gas E&P subindustry, Marathon Oil's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Marathon Oil's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Marathon Oil's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Marathon Oil's Cyclically Adjusted Price-to-FCF falls into.



Marathon Oil Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Marathon Oil's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=27.77/1.07
=25.95

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Marathon Oil's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Marathon Oil's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.209/129.4194*129.4194
=1.209

Current CPI (Dec. 2023) = 129.4194.

Marathon Oil Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.670 99.695 0.870
201406 -0.203 100.560 -0.261
201409 0.538 100.428 0.693
201412 -0.538 99.070 -0.703
201503 -1.693 99.621 -2.199
201506 -0.679 100.684 -0.873
201509 -0.195 100.392 -0.251
201512 -0.257 99.792 -0.333
201603 -0.503 100.470 -0.648
201606 -0.124 101.688 -0.158
201609 0.172 101.861 0.219
201612 0.307 101.863 0.390
201703 0.369 102.862 0.464
201706 -0.026 103.349 -0.033
201709 0.025 104.136 0.031
201712 -0.198 104.011 -0.246
201803 -0.015 105.290 -0.018
201806 0.151 106.317 0.184
201809 0.229 106.507 0.278
201812 0.206 105.998 0.252
201903 -0.122 107.251 -0.147
201906 0.184 108.070 0.220
201909 0.081 108.329 0.097
201912 0.105 108.420 0.125
202003 0.102 108.902 0.121
202006 -0.401 108.767 -0.477
202009 0.254 109.815 0.299
202012 0.208 109.897 0.245
202103 0.523 111.754 0.606
202106 0.483 114.631 0.545
202109 0.668 115.734 0.747
202112 1.137 117.630 1.251
202203 1.004 121.301 1.071
202206 1.877 125.017 1.943
202209 1.676 125.227 1.732
202212 1.196 125.222 1.236
202303 0.529 127.348 0.538
202306 0.719 128.729 0.723
202309 0.949 129.860 0.946
202312 1.209 129.419 1.209

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Marathon Oil  (NYSE:MRO) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Marathon Oil Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Marathon Oil's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Marathon Oil (Marathon Oil) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Marathon Oil Corp (NYSE:MRO) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
990 Town and Country Boulevard, Houston, TX, USA, 77024-2217
Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.
Executives
Dane E Whitehead officer: Executive VP and CFO C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST, HOUSTON TX 77056
Michael A Henderson officer: Senior VP, Operations C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST, HOUSTON TX 77056
Patrick Wagner officer: See Remarks 1401 MC KINNEY ST., SUITE 2400, HOUSTON TX 77010
Lee M Tillman director, officer: President and CEO C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST., HOUSTON TX 77056
Rob L. White officer: VP, Controller & CAO C/O MARATHON OIL CORPORATION, 990 TOWN & COUNTRY BOULEVARD, HOUSTON TX 77024
Shawn D. Williams director 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Mark A Mccollum director 3000 NORTH SAM HOUSTON PARKWAY E., HOUSTON TX 77002
Kimberly O. Warnica officer: Senior VP & General Counsel 505 TRAILS END, HOUSTON TX 77024
Gary Eugene Wilson officer: VP, Controller & CAO C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST., HOUSTON TX 77056
Holli C. Ladhani director 2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056
Brent J Smolik director 1001 NOBLE ENERGY WAY, HOUSTON TX 77070
James Kent Wells director 1700 LINCOLN STREET, SUITE 2800, DENVER CO 80203-4535
Jason Few director 2201 COLQUITT STREET, HOUSTON TX 77098
Thomas Mitchell Little officer: Executive VP - Operations C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST, HOUSTON TX 77056
M Elise Hyland director 625 LIBERTY AVENUE, SUITE 1700, C/O EQT CORPORATION, PITTSBURGH PA 15222

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