Highly Regarded

Is Chevron Corporation (CVX) Stock Undervalued or Overvalued?

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

32% Premium TTM fundamentals · sector averages from covered peers

CVX trades at 23.6× TTM earnings — a 32% premium to its Energy sector average of 18.0× in our coverage.

The Numbers

P/E (TTM)

23.6×

Sector avg: 18.0×

P/S (TTM)

1.7×

Sector avg: 1.9×

Market Cap

$332.88B

EPS (TTM): $7.11

Revenue (TTM)

$194.38B

Net income: $12.90B

Energy Peer Comparison

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

Stock Price P/E (TTM)
CVX This page $168.12 23.6×
XOM $136.46 19.8×
COP $103.57 14.6×
SLB $45.71 19.5×

Is the Premium Justified?

July 6, 2026

Chevron Corporation's P/E of 23.6x is at a premium to the Energy sector average of 19.4x. This higher valuation comes despite a 29% year-over-year decline in Q1 2026 operating income to $3.50 billion, with revenue remaining relatively flat. The company's operating margin compressed to 7.3% in Q1 2026, down from 11.6% two years prior, primarily due to unfavorable timing effects related to volatile crude prices. However, Chevron has maintained a strong gross profit margin, which peaked at 42.4% in March 2026. While the pace of dividend growth has slowed, the company has a long history of increases. The premium multiple may reflect investor confidence in Chevron's long-term asset base, integrated operations, and resilience within the often-cyclical energy market, despite recent margin pressures.

Sources

Frequently Asked Questions

Is CVX overvalued or undervalued?
On trailing-twelve-month earnings, CVX trades at 23.6x versus a Energy sector average of 18.0x in our coverage — a 31.5% 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 CVX 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

COP SLB XOM