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 25.4× TTM earnings — roughly in line with its Energy sector average of 23.8×.

The Numbers

P/E (TTM)

25.4×

Sector avg: 23.8×

P/S (TTM)

2.2×

Sector avg: 2.4×

Market Cap

$730.03B

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)	P/S (TTM)	Market Cap
XOM This page	$174.69	25.4×	2.2×	$730.03B
CVX Chevron Corporation	$219.39	30.9×	2.2×	$434.39B
COP ConocoPhillips	$141.73	20.0×	2.9×	$173.64B
SLB Schlumberger Limited	$48.36	20.6×	2.0×	$72.31B

Is the Multiple Justified?

October 11, 2026

Exxon Mobil's P/E of 24.6x is slightly above the energy sector average of 23.5x. The company reported Q2 2026 earnings that missed analyst expectations, though its revenue of $116 billion exceeded estimates. ExxonMobil has achieved significant operational milestones, including producing 1 billion barrels of oil from Guyana's Stabroek block and record production in the Permian Basin. The company has also raised its 2030 outlook for earnings and cash flow growth, driven by advantaged assets and proprietary technologies. While the broader oil and gas industry navigates geopolitical and regulatory uncertainties, ExxonMobil's strong production growth, disciplined capital allocation, and strategic investments in lower-emission technologies like carbon capture and storage likely contribute to its slightly elevated valuation.

Sources

Frequently Asked Questions

Is XOM overvalued or undervalued?

On trailing-twelve-month earnings, XOM trades at 25.4x versus a Energy sector average of 23.8x in our coverage — a 6.6% 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

SLB COP CVX