Mary Hayward, West Texas A&M University

An Equity Analysis and Valuation of Andeavor

Abstract: The purpose of this research is to analyze Andeavor, a publicly traded oil and gas company, and issue a buy, sell, or hold recommendation based on team equity research. Our faculty mentor on this research was Dr. Anne Macy, Edwards Professor of Finance, in the Department of Accounting, Economics and Finance. We examined both industry and macroeconomic variables that impact Andeavor and used several valuation methods including a discounted cash flow and relative valuation analysis based on projected financials to reach our conclusion. We also performed a comparative peer and investment risk analysis.

Based on $110.76 stock price on 1/29/18 we reached a target price of $132.83 based on our valuation models. This target price supports our conclusion of a BUY recommendation.

Presentation Author(s):
Mary Hayward*, Chandler Huddleston, Arne van Mourik, Josh Roberts, and Lawrence Schwartz

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