ConocoPhillips (COP) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$116.81
PE Ratio (TTM)
19.8x
Intrinsic Value
$109.63
-6.5% margin of safety
COMPETITIVE MOAT
↑Vast, Low-Cost Resource Base
ConocoPhillips possesses extensive, high-quality reserves in key regions. This allows for efficient extraction and a lower cost structure compared to many competitors.
↑Operational Expertise and Scale
Decades of experience in complex exploration and production projects provide a significant advantage. Large-scale operations lead to economies of scale and optimized efficiency.
↑Disciplined Capital Allocation
A focus on shareholder returns through dividends and buybacks, coupled with prudent investment in high-return projects, builds investor confidence and financial strength.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The energy sector faces increasing regulatory oversight and pressure to transition to cleaner energy sources. This can lead to higher compliance costs and potential limitations on future exploration.
↓Competition from Other Energy Sources
The rise of renewable energy and advancements in energy storage technologies pose a long-term threat to fossil fuel demand. This could impact future market share and pricing power.
↓Execution Risk on Large Projects
Developing and bringing large-scale oil and gas projects online is complex and carries inherent risks. Delays, cost overruns, or technical challenges can significantly impact financial performance.
Base case
COP base case PE valuation
A base case PE valuation for COP estimates a fair value of about $109.63 per share, against a current price of $116.81. The model assumes 2.8% annual earnings growth, a 20x target PE multiple, and a 10% discount rate.
Intrinsic Value
$109.63
Margin of safety
-6.5%
Expected annual return
-1.3%
Base case assumptions: 2.8% annual earnings growth, 20x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 COP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for ConocoPhillips respond.
Open PE Calculator for COPCompany Overview
ConocoPhillips is an energy company that engages in the global exploration, production, transportation, and marketing of various resources, including crude petroleum, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids (NGLs). Its primary operations are centered on both conventional and tight oil formations, shale gas, heavy crude, LNG developments, and oil sands projects. The company's extensive portfolio includes unconventional resources located in North America; established conventional assets spanning North America, Europe, Asia, and Australia; numerous LNG ventures; oil sands properties within Canada; and a significant inventory of potential conventional and unconventional exploration opportunities. ConocoPhillips was established in 1917 and its corporate headquarters are situated in Houston, Texas.
Financial Metrics — COP PE Stock Valuation Data
PE Ratio (TTM)
19.8x
PEG Ratio
n/m
Earnings Yield
5.12%
ROE (TTM)
11.3%
Revenue/Share (TTM)
$47.64
Dividend Yield
2.83%
Debt/Equity
0.36x
Frequently Asked Questions
What is the PE ratio of COP?
The trailing twelve-month PE ratio of COP reflects how much investors pay per dollar of ConocoPhillips's earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is COP overvalued based on PE ratio?
COP's PE of 19.8x combined with a PEG ratio of -0.78 provides a growth-adjusted perspective. COP has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 COP stock using PE ratio?
To value ConocoPhillips using PE: (1) Compare the current PE (19.8x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-0.78) 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 COP?
COP's PEG ratio is -0.78, calculated by dividing the PE ratio (19.8x) by the expected earnings growth rate. Because COP has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for COP stock valuation?
PE ratio gives a quick relative read — how COP is priced versus Oil & Gas Exploration & Production 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 COP 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 COP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.