Highly Regarded

Is ConocoPhillips (COP) Stock Undervalued or Overvalued?

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

22% Discount TTM fundamentals · sector averages from covered peers

COP trades at 20.0× TTM earnings — a 22% discount to its Energy sector average of 25.6× in our coverage.

The Numbers

P/E (TTM)

20.0×

Sector avg: 25.6×

P/S (TTM)

2.9×

Sector avg: 2.1×

Market Cap

$173.64B

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 $141.73 20.0×
XOM $174.69 25.4×
CVX $219.39 30.9×
SLB $48.36 20.6×

Is the Discount Justified?

October 11, 2026

ConocoPhillips' P/E of 19.0x trades at a discount to the sector average of 23.5x. This valuation reflects a mixed outlook despite strong recent financial performance. The company reported robust second-quarter 2026 earnings and adjusted EPS, primarily driven by higher commodity prices. However, production saw a year-over-year decrease, partly influenced by the Middle East conflict and higher Surmont royalties. While management has reaffirmed full-year guidance and anticipates U.S. oil production to exceed 14 million barrels per day by 2027 if current prices hold, growth remains a relative weakness, with a reported 3-year revenue decline. The company is strategically evaluating asset sales in its North Sea and Norwegian operations, aiming to reallocate capital towards lower-breakeven domestic assets, which could optimize its portfolio and potentially enhance long-term margins.

Sources

Frequently Asked Questions

Is COP overvalued or undervalued?
On trailing-twelve-month earnings, COP trades at 20.0x versus a Energy sector average of 25.6x in our coverage — a 21.7% 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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SLB CVX XOM