Chevron Corporation (CVX) Stock Valuation — PE Analysis
Oil & Gas Integrated · NYSE
Current Price
$205.19
PE Ratio (TTM)
19.6x
Intrinsic Value
$169.18
-21.3% margin of safety
COMPETITIVE MOAT
↑Global Scale and Infrastructure
Chevron possesses vast, integrated infrastructure for exploration, production, refining, and marketing. This global network creates significant barriers to entry for new competitors.
↑Technological Expertise and R&D
The company invests heavily in advanced technologies for efficient resource extraction and processing. This expertise allows for cost advantages and access to challenging reserves.
↑Brand Recognition and Distribution
Chevron's established brand and extensive distribution channels provide a reliable customer base. This allows for consistent demand and pricing power in its refined products.
INVESTMENT RISKS
↓Commodity Price Volatility
Oil and gas prices are inherently volatile, directly impacting Chevron's revenue and profitability. Fluctuations can be driven by geopolitical events and global demand shifts.
↓Geopolitical Instability
Operations in various regions expose Chevron to geopolitical risks, including political unrest and supply disruptions. These events can significantly impact production and costs.
↓Execution of Diversification Strategy
Successfully transitioning to new energy sources and technologies, as indicated by the Microsoft power deal, carries execution risk. The repeatability of such models needs to be proven.
Base case
CVX base case PE valuation
At a current price of $205.19, the base case PE valuation puts CVX fair value near $169.18 per share. That figure assumes 0.3% yearly earnings growth, a target PE multiple of 19.64x, and a 10% discount rate.
Intrinsic Value
$169.18
Margin of safety
-21.3%
Expected annual return
-3.8%
Base case assumptions: 0.3% annual earnings growth, 19.64x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CVX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Chevron Corporation respond.
Open PE Calculator for CVXCompany Overview
Chevron Corporation functions as a global energy and chemicals powerhouse, orchestrating its diverse operations worldwide. The company's business is organized into two primary divisions: Upstream and Downstream. The Upstream segment focuses on the full lifecycle of crude oil and natural gas, from their initial exploration and development to production and subsequent transportation. This also encompasses the processing, liquefaction, transit, and regasification of liquefied natural gas (LNG), as well as pipeline transport of crude oil and the movement, storage, and sale of natural gas. Additionally, this segment manages a facility dedicated to converting natural gas into liquid fuels. In contrast, the Downstream segment is tasked with refining crude oil into a variety of petroleum products. Its activities include the merchandising of crude oil, refined goods, and lubricants, in addition to the creation and distribution of renewable fuels. This division is also responsible for moving crude oil and refined products using a range of methods, including pipelines, ships, motor vehicles, and rail cars. Furthermore, it produces and markets bulk petrochemicals, industrial-grade plastics, and additives for both fuels and lubricants. Beyond these core ventures, Chevron is also involved in financial management, debt financing, insurance underwriting, real estate development, and various technology-driven enterprises. Founded in 1879, the company operated as ChevronTexaco Corporation until it officially became Chevron Corporation in 2005. Its corporate headquarters are situated in San Ramon, California.
Financial Metrics — CVX PE Stock Valuation Data
PE Ratio (TTM)
19.6x
PEG Ratio
0.57
Earnings Yield
5.09%
ROE (TTM)
11.0%
Revenue/Share (TTM)
$105.95
Dividend Yield
3.44%
Debt/Equity
0.20x
Frequently Asked Questions
What is the PE ratio of CVX?
The trailing twelve-month PE ratio of CVX reflects how much investors pay per dollar of Chevron Corporation's earnings. This metric is most useful when compared to Oil & Gas Integrated peers and the company's own historical range.
Is CVX overvalued based on PE ratio?
CVX's PE of 19.6x combined with a PEG ratio of 0.57 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Integrated, a DCF analysis may be more appropriate.
How do I value CVX stock using PE ratio?
To value Chevron Corporation using PE: (1) Compare the current PE (19.6x) against the Oil & Gas Integrated median to assess relative pricing, (2) check the PEG ratio (0.57) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CVX?
CVX's PEG ratio is 0.57, calculated by dividing the PE ratio (19.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CVX stock valuation?
PE ratio gives a quick relative read — how CVX is priced versus Oil & Gas Integrated peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CVX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value CVX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.