Cheap — but check the trap first.

It looks undervalued, but something is deteriorating. Cheap for a reason, or a real bargain?

Current price
$61.70
Market cap ≈ $62B
Intrinsic value
$105
range $73 – $155
Margin of safety
+71%
below fair value
1 FY16 1 FY17 3 FY18 1 FY19 1 FY20 8 FY21 12 FY22 7 FY23 5 FY24 4 FY25

What the math is really telling you. Watch whether cash flow is compounding — that, more than any single year, is what a value read hangs on.

  • Good:
    Undervalued
    Fair value ~$105 vs $62 — a margin of safety of 71%.
  • Warning:
    Price assumes a big acceleration
    You'd need ~-1%/yr free-cash-flow growth to justify today's price; it has done -30.7%/yr lately.
  • Warning:
    Revenue shrinking
    Down 5.0% last year — cheap may mean broken.
  • Caution:
    Cash flow flat-to-down
    Free cash flow ~-30.7%/yr — big, but not compounding. The crux for a value buyer.
  • Caution:
    Manageable net debt
    Net debt of $20B — about 3.1× annual free cash flow. Normal for a mature company.

Where this number comes from →

How this was built. Every figure is computed from Occidental Petroleum Corporation's SEC filings — no estimates, no AI. Two-stage DCF: 9% discount rate, 5% free-cash-flow growth for 10 years, 2.5% terminal. Free cash flow is operating cash flow less capital spending. Fair value is based on typical free cash flow over the last five years ($6.6B), not the latest year ($4.1B), which sat 38% below the company's own norm. Net cash is cash and marketable securities less borrowings, commercial paper and finance leases; operating leases are disclosed but never counted as debt. We subtract net debt from the value of the business — for Occidental Petroleum that is about $20B, or $20 per share. Fundamentals are from the FY25 annual report and change only when a new one is filed. Price of $61.70 taken 2026-09-08 (Google Finance, manual entry, 2026-09-11) — it is not live and does not move during the day.

TickerMath is an educational tool, not investment advice — it computes one model from SEC filings and can be wrong. How we compute this →