Occidental Petroleum Corporation (OXY) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$61.30
PE Ratio (TTM)
9.2x
Intrinsic Value
$69
+11.2% margin of safety
COMPETITIVE MOAT
↑Low-Cost Production Assets
OXY possesses strategically located, low-cost oil and gas reserves. This allows for profitable production even during periods of lower commodity prices.
↑Carbon Capture Technology Leadership
Pioneering carbon capture, utilization, and storage (CCUS) provides a unique competitive edge. This technology offers future growth avenues and potential regulatory advantages.
↑Strong Free Cash Flow Generation
Consistent and growing free cash flow, exceeding guidance, strengthens the balance sheet. This financial flexibility supports reinvestment and shareholder returns.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The oil and gas industry faces increasing regulatory oversight and environmental activism. Stricter regulations could increase operating costs and limit expansion.
↓Geopolitical Instability
Global political events can disrupt supply chains and impact crude oil prices. Geopolitical tensions can create unpredictable market conditions.
↓Operational Execution Risks
Exploration and production activities carry inherent operational risks. Accidents, equipment failures, or drilling challenges can lead to significant financial losses.
Base case
OXY base case PE valuation
A base case PE valuation for OXY estimates a fair value of about $69 per share, against a current price of $61.3. The model assumes 1.2% annual earnings growth, a 8.42x target PE multiple, and a 10% discount rate.
Intrinsic Value
$69
Margin of safety
+11.2%
Expected annual return
+2.4%
Base case assumptions: 1.2% annual earnings growth, 8.42x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
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 OXY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Occidental Petroleum Corporation respond.
Open PE Calculator for OXYCompany Overview
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. It operates through Oil and Gas and Midstream and Marketing. The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. This segment also optimizes its transportation and storage capacity and invests in entities. The Midstream and Marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGLs, natural gas, carbon dioxide, and power. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.
Financial Metrics — OXY PE Stock Valuation Data
PE Ratio (TTM)
9.2x
PEG Ratio
0.03
Earnings Yield
11.87%
ROE (TTM)
19.0%
Revenue/Share (TTM)
$25.27
Dividend Yield
1.63%
Debt/Equity
0.35x
Frequently Asked Questions
What is the PE ratio of OXY?
The trailing twelve-month PE ratio of OXY reflects how much investors pay per dollar of Occidental Petroleum Corporation's earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is OXY overvalued based on PE ratio?
OXY's PE of 9.2x combined with a PEG ratio of 0.03 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 Exploration & Production, a DCF analysis may be more appropriate.
How do I value OXY stock using PE ratio?
To value Occidental Petroleum Corporation using PE: (1) Compare the current PE (9.2x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (0.03) 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 OXY?
OXY's PEG ratio is 0.03, calculated by dividing the PE ratio (9.2x) 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 OXY stock valuation?
PE ratio gives a quick relative read — how OXY is priced versus Oil & Gas Exploration & Production peers. DCF provides an absolute value based on projected free cash flows. For OXY, with a strong ROE of 19.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 OXY 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 OXY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.