REPYF - Repsol's DCF: Fresh Money From The European Union And Cheap

• Repsol is an energy and petrochemical business developing renewable energy projects, exploration and production of oil and gas, and industrial applications.
• Under the new 2021-2025 Strategic Plan, the management is undertaking a significant number of initiatives to transform the company. Like other petroleum corporations, Repsol is trying to develop decarbonized businesses.
• The financial community appears to be aware of the company’s new developments. According to the latest quarterly report, Moody’s confirmed the company’s rating from negative to stable.
• I designed several financial models with a WACC of 7.7%-9.5%, long-term growth of 4.5%-5%, and market estimates. The implied price that resulted from my DCF is €7-€36.
• Considering the number of euros that the European Union may deliver to Repsol, I won’t worry much about the company’s financial debt.

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