Highly Regarded

Is Exxon Mobil Corporation (XOM) Stock Undervalued or Overvalued?

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

In Line TTM fundamentals · sector averages from covered peers

XOM trades at 21.4× TTM earnings — roughly in line with its Energy sector average of 20.9×.

The Numbers

P/E (TTM)

21.4×

Sector avg: 20.9×

P/S (TTM)

1.8×

Sector avg: 2.1×

Market Cap

$616.03B

EPS (TTM): $6.88

Revenue (TTM)

$333.36B

Net income: $31.11B

Energy Peer Comparison

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

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

Is the Multiple Justified?

July 12, 2026

ExxonMobil's P/E of 20.2x is precisely in line with the energy sector average, reflecting its position as a major integrated oil and gas company. The company recently achieved a 40-year production record and is actively investing in new upstream projects, including the Usan Infill Project offshore Nigeria, and expanding operations in the Permian and Guyana basins. ExxonMobil maintains a strong balance sheet and significant financial flexibility, enabling it to fund growth initiatives, sustain its dividend (with 43 consecutive years of increases), and execute share repurchases. Its updated 2030 Corporate Plan projects substantial earnings and cash flow growth without increasing capital spending, driven by advantaged assets. However, operational risks, such as the impact of damaged LNG infrastructure in Qatar, remain a consideration.

Sources

Frequently Asked Questions

Is XOM overvalued or undervalued?
On trailing-twelve-month earnings, XOM trades at 21.4x versus a Energy sector average of 20.9x in our coverage — a 2.7% 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 XOM 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 SLB COP