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 18.7× TTM earnings — a 28% discount to its Energy sector average of 26.0× in our coverage.

The Numbers

P/E (TTM)

18.7×

Sector avg: 26.0×

P/S (TTM)

2.7×

Sector avg: 2.2×

Market Cap

$162.37B

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

Is the Discount Justified?

August 30, 2026

ConocoPhillips currently trades at a P/E of 18.4x, a discount compared to the energy sector average of 23.5x. This valuation reflects the company's strategic focus on cost efficiency, with a planned $1 billion reduction in capital and operating costs for 2026. ConocoPhillips also aims to return 45% of its cash from operations to shareholders in 2026, demonstrating a commitment to shareholder value. While Q4 2025 production saw a slight adjusted decrease, Q2 2026 earnings increased due to higher commodity prices and cost reductions. The company is also prioritizing significant Liquefied Natural Gas (LNG) investments as a foundation for future low-carbon ventures. The discount may be influenced by the broader industry's cyclical nature and pressures on oil and gas producers, despite the company's strong operational focus and recent positive earnings.

Sources

Frequently Asked Questions

Is COP overvalued or undervalued?

On trailing-twelve-month earnings, COP trades at 18.7x versus a Energy sector average of 26.0x in our coverage — a 27.9% 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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XOM CVX SLB