Exxon Mobil Corporation (XOM) Intrinsic Value & DCF Valuation
Oil & Gas Integrated · NYSE
Current Price
$147.01
Intrinsic Value
$172.31
+14.7% margin of safety
What Is Exxon Mobil Corporation's Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of Exxon Mobil Corporation (XOM) at $172.31 per share, compared with a market price of $147.01, a margin of safety of +14.7%. The base case assumes 12.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $144.69 to $203.59. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Exxon Mobil Corporation (XOM) Undervalued?
At $147.01, XOM trades about 14.7% below our base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety we require before calling a stock undervalued.
COMPETITIVE MOAT
↑Integrated Value Chain
ExxonMobil's upstream, midstream, and downstream integration provides significant operational efficiencies and cost advantages. This allows them to capture value across the entire oil and gas lifecycle.
↑Scale and Global Reach
Their immense size and extensive global infrastructure enable economies of scale in exploration, production, and refining. This global presence also diversifies geographic risk.
↑Technological Prowess
ExxonMobil invests heavily in advanced technologies for exploration and production, leading to more efficient resource extraction. This technological edge helps them access and develop challenging reserves.
INVESTMENT RISKS
↓Energy Transition Headwinds
The global shift towards renewable energy sources poses a long-term threat to demand for fossil fuels. Regulatory pressures and changing consumer preferences could impact profitability.
↓Commodity Price Volatility
Oil and gas prices are inherently volatile, influenced by geopolitical events and supply/demand dynamics. Significant price drops can severely impact revenue and earnings.
↓Environmental and Regulatory Scrutiny
Increasing environmental regulations and potential litigation related to climate change present significant operational and financial risks. Compliance costs and reputational damage are key concerns.
Base case
XOM base case valuation
Intrinsic Value
$172.31
Margin of safety
+14.7%
Expected annual return
+3.2%
Base case assumptions: 12.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the XOM valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Exxon Mobil Corporation respond.
Open DCF Calculator for XOMCompany Overview
Exxon Mobil Corporation is a global energy firm that undertakes the exploration and extraction of oil and natural gas resources across its domestic operations and international territories. The company organizes its vast activities into three primary divisions: Upstream, Downstream, and Chemical. Beyond resource acquisition, Exxon Mobil is deeply engaged in the manufacturing, commercial trading, logistical transportation, and marketing of crude oil, natural gas, refined petroleum goods, a wide array of petrochemicals (including olefins, polyolefins, and aromatics), and other specialized chemical products. Furthermore, the company is actively developing solutions in carbon capture and storage, hydrogen, and biofuels. As of December 31, 2021, the corporation maintained approximately 20,528 net operational wells with verified reserves. Founded in 1870, Exxon Mobil's corporate headquarters are located in Irving, Texas.
Financial Metrics — XOM Stock Valuation Data
Revenue/Share (TTM)
$77.94
FCF/Share (TTM)
$4.49
ROIC (TTM)
5.5%
ROE (TTM)
9.8%
P/FCF
32.4x
EV/EBITDA
10.7x
FCF Yield
3.08%
Debt/Equity
0.19x
Based on trailing twelve-month data, XOM shows a free cash flow per share of $4.49 and a ROIC of 5.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 32.4x and FCF yield of 3.08% are important context metrics when evaluating XOM's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of XOM?
Exxon Mobil Corporation currently generates $4.49 in free cash flow per share. At the current price of $147.01, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is XOM undervalued?
XOM trades at a P/FCF ratio of 32.4x with a free cash flow yield of 3.08%. This P/FCF is in a moderate range. However, whether XOM is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value XOM stock using DCF?
To perform a DCF valuation on Exxon Mobil Corporation: (1) Start with the trailing free cash flow per share ($4.49) as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Integrated industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting XOM's risk profile — with a debt-to-equity of 0.19x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to XOM?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Exxon Mobil Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Oil & Gas Integrated trends, then discounting those amounts to today's dollars. XOM's ROIC of 5.5% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect XOM stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For XOM, with a debt-to-equity ratio of 0.19x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See XOM PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value XOM with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.