Highly Regarded

Is ConocoPhillips (COP) Stock Undervalued or Overvalued?

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

28% Discount TTM fundamentals · sector averages from covered peers

COP trades at 16.2× TTM earnings — a 28% discount to its Energy sector average of 22.6× in our coverage.

The Numbers

P/E (TTM)

16.2×

Sector avg: 22.6×

P/S (TTM)

2.4×

Sector avg: 1.9×

Market Cap

$140.55B

EPS (TTM): $7.07

Revenue (TTM)

$59.79B

Net income: $8.85B

Energy Peer Comparison

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

Stock Price P/E (TTM)
COP This page $114.72 16.2×
XOM $147.41 21.4×
CVX $187.38 26.4×
SLB $46.99 20.0×

Is the Discount Justified?

July 12, 2026

ConocoPhillips' P/E multiple of 15.4x, below the sector average of 20.2x, reflects a valuation influenced by recent performance and sector dynamics. The company reported a decline in first-quarter 2026 earnings and adjusted earnings year-over-year, primarily due to lower natural gas prices and slightly reduced production volumes. Both net and operating margins have also shown some contraction. While ConocoPhillips is focused on capital efficiency and aims for a $1 billion reduction in capital and operating costs in 2026, its forecast annual earnings growth rate is projected to trail the broader US Oil & Gas E&P industry average. The overall oil and gas sector outlook for 2026 suggests potential oversupply and subdued oil prices, which could temper growth expectations for upstream-focused companies. The company's strategy prioritizes stability and consistent shareholder returns over aggressive volume expansion, which may contribute to its current valuation relative to the sector.

Sources

Frequently Asked Questions

Is COP overvalued or undervalued?
On trailing-twelve-month earnings, COP trades at 16.2x versus a Energy sector average of 22.6x in our coverage — a 28.2% discount. 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 COP 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

CVX XOM SLB