Highly Regarded

Is Chevron Corporation (CVX) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Energy sector peers in our coverage

40% Premium TTM fundamentals · sector averages from covered peers

CVX trades at 30.9× TTM earnings — a 40% premium to its Energy sector average of 22.0× in our coverage.

The Numbers

P/E (TTM)

30.9×

Sector avg: 22.0×

P/S (TTM)

2.2×

Sector avg: 2.4×

Market Cap

$434.39B

EPS (TTM): $7.11

Revenue (TTM)

$194.38B

Net income: $12.90B

Energy Peer Comparison

How CVX's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
CVX This page $219.39 30.9×
XOM $174.69 25.4×
COP $141.73 20.0×
SLB $48.36 20.6×

Is the Premium Justified?

October 11, 2026

Chevron Corporation's P/E of 29.8x trades at a premium to the energy sector average of 23.5x, supported by strong operational performance and strategic initiatives. The company reported robust second-quarter 2026 earnings of $12.1 billion, with a 21% return on capital employed. Chevron achieved record U.S. production, contributing to a 20% year-over-year increase in worldwide production. The acquisition of Hess Corporation is a significant driver, enhancing Chevron's growth profile through high-quality assets like Guyana's Stabroek Block and projected synergies of $1.5 billion. Management targets annual production growth of 2-3% and over 10% adjusted free cash flow growth through 2030, even at a Brent price of $70. The company also returned $6.5 billion to shareholders in Q2 and increased its quarterly dividend by 4%.

Sources

Frequently Asked Questions

Is CVX overvalued or undervalued?
On trailing-twelve-month earnings, CVX trades at 30.9x versus a Energy sector average of 22.0x in our coverage — a 40.2% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing CVX with its own Energy peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Energy names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Energy peers

SLB COP XOM