'BP plc' Analysis report Research Paper Example | Topics and Well Written Essays - 5250 words

BP plc Analysis report - Research Paper ExampleUnder rating of the companys stock using the DCF method is an reading that company shareholder value is expected to generate more wealth for its shareholdersThis paper seeks to prepare industry analysis, financial analysis and valuation of BP plc using various models. Financial analysis would include looking into the companys financial performance in the last five years in terms of profitability, liquidity, solvency and valuation ratios. The paper will also explain the value derived from valuation models in relation to the financial performance of the company and the industry analysis on whether it is doing the slouch strategies to generate value.BP p.l.c. (or BP) was founded in 1909 and incorporated in the United Kingdom. It presently operates as international oil and gas company with various products in not less(prenominal) than 40 countries. The company has two major segments The Exploration and Production, and Refining and Marketin g. The first segment is responsible to oil and natural gas exploration, field development and production, transportation, repositing and processing, as well as marketing and trading of natural gas and liquefied natural gas and new(prenominal) power and natural gas liquids. The other segment - Refining and Marketing is into refining, manufacturing, marketing, transportation, supply and trading of petroleum, crude oil, petrochemical products and related services to wholesale and retail customers (Reuters, 2014a).The oil and gas industry sector is intermit of the cypher industry which is expected to grow heftily at least up to the year 2035 as a result of increasing population and growing collect for energy (Annual Report, 2013). The other sources of energy renewable, nuclear, hydro, and coal and yet oil and oil will continue to have big part in serving the energy requirement of the world in the next twenty years. The company believes that population and