Projects & competitions Sep – Oct 2022
S&P Global Market Intelligence Corporate Valuation Challenge
Investment analysis · ExxonMobil
Analyzed ExxonMobil through industry research, business-segment analysis, financial diagnostics, and valuation. The project examined how the 2022 energy-market context and company operations informed a value assessment.
Context and objective
Analyzed ExxonMobil through industry research, business-segment analysis, financial diagnostics, and valuation. The project examined how the 2022 energy-market context and company operations informed a value assessment.
The research formed part of the S&P Global Market Intelligence Corporate Valuation Challenge. It connected industry and company analysis, historical financial performance, and valuation methods to support a judgment about company value.
The industry environment
Assessed how the Russia–Ukraine conflict, OPEC+ production cuts, and the energy transition affected oil and gas supply, demand, and prices. Connected the external environment with the company’s operating context.
The industry work established a context for the company analysis: supply, demand, and prices shaped the operating environment, while the energy transition raised longer-term competitive questions. These considerations were examined alongside the company’s business structure.
Business segments and peers
Benchmarked Shell and BP and examined ExxonMobil’s upstream, downstream, and chemicals businesses. Evaluated advantages and risks associated with scale, integrated operations, and the low-carbon transition.
Considering upstream, downstream, and chemicals activities helped explain the integrated business. International peer comparisons provided a reference for assessing advantages and risks.
Financial performance and operating quality
Analyzed margins, ROA, ROE, liquidity, leverage, and turnover against historical results to assess profitability, solvency, and operating efficiency.
| Dimension | Measures and focus |
|---|---|
| Profitability | Margins, ROA, and ROE to examine profits and returns on assets and equity. |
| Solvency | Liquidity and leverage to examine the funding structure and ability to meet obligations. |
| Operating efficiency | Turnover measures and historical performance to examine resource use and operations. |
Cash-flow valuation and comparables
Built an FCFF-based DCF framework, estimated WACC, and cross-checked the assessment using P/E and EV/EBITDA comparables. Connected cash-flow valuation with market multiples in the final value judgment.
| Method | Role in the analysis |
|---|---|
| FCFF / DCF | A discounted cash-flow framework based on free cash flow to the firm. |
| WACC | An estimate of the weighted average cost of capital for discounting cash flows. |
| P/E / EV/EBITDA | Comparable-company market multiples used to cross-check the value assessment. |
Outcome and learning
Honorable Mention in the S&P Global Market Intelligence Corporate Valuation Challenge.
The project connected the industry environment, company structure, financial indicators, and valuation methods in a single analytical chain, strengthening the relationship between financial analysis and commercial judgment.
Outcome & delivery
Honorable Mention in the S&P Global Market Intelligence Corporate Valuation Challenge.
- Industry research
- Financial ratios
- FCFF / DCF
- WACC
- P/E · EV/EBITDA