Question:

Stock Valuation (On Conoco Phillips)

Conduct a valuation of your company's stock by using DDM model.

What are the key "value drivers" for your company? (Identify the key assumptions or variables that influence the value of your company the most. The examples would include the growth rate assumptions, the growth period assumptions, etc.)

Evaluate your company against a carefully selected list of its comparables and/or regression analysis. Choose a multiple that you think is the most appropriate for comparing the firms in your group/sector.

Based on your valuation results, what "should" the stock price of your company be? How do you explain the difference between your estimated stock price and its actual stock price?