Is Chevron Corporation (CVX) Stock Undervalued or Overvalued?

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

28% Premium TTM fundamentals · sector averages from covered peers

CVX trades at 29.0× TTM earnings — a 28% premium to its Energy sector average of 22.6× in our coverage.

The Numbers

P/E (TTM)

29.0×

Sector avg: 22.6×

P/S (TTM)

2.1×

Sector avg: 2.4×

Market Cap

$408.22B

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)	P/S (TTM)	Market Cap
CVX This page	$206.17	29.0×	2.1×	$408.22B
XOM Exxon Mobil Corporation	$160.96	23.4×	2.0×	$672.65B
COP ConocoPhillips	$132.53	18.7×	2.7×	$162.37B
SLB Schlumberger Limited	$60.13	25.6×	2.5×	$89.91B

Is the Premium Justified?

August 30, 2026

Chevron Corporation trades at a P/E of 28.4x, representing a premium to the energy sector average of 23.5x. This valuation is supported by Chevron's strategic capital allocation, with its 2026 budget focusing on high-return opportunities, particularly in U.S. shale and tight assets. The company aims to enhance cash flow and earnings while delivering superior shareholder returns. Recent strong financial performance, including adjusted earnings of $12.0 billion and shareholder distributions of $6.5 billion in Q2 2026, further justifies this premium. Chevron is also actively expanding operations in Venezuela and is recognized for its innovative use of AI in the oil and gas industry. The company's long-term outlook on global energy demand also contributes to a favorable market perception.

Sources

Frequently Asked Questions

Is CVX overvalued or undervalued?

On trailing-twelve-month earnings, CVX trades at 29.0x versus a Energy sector average of 22.6x in our coverage — a 28.4% 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

COP XOM SLB