Exxon Mobil Corporation (XOM) Fair Value & PE Analysis
Oil & Gas Integrated · NYSE
Current Price
$155.88
PE Ratio (TTM)
26.4x
Intrinsic Value
$130.08
-19.8% margin of safety
What Is Exxon Mobil Corporation's Fair Value?
As of 2026-07-30, applying a 26.0x earnings multiple to Exxon Mobil Corporation's (XOM) earnings per share of $6.05 yields a fair value estimate of $130.08 per share, versus a market price of $155.88.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $107.66 to $155.8. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · XOM intrinsic value (DCF view)
Is Exxon Mobil Corporation (XOM) Overvalued?
At $155.88, XOM trades above its PE-based fair value estimate, meaning the market pays a premium over the applied earnings multiple. By this model the stock looks expensive unless earnings grow into the price.
COMPETITIVE MOAT
↑Massive Scale and Integrated Operations
XOM's vast global infrastructure and integrated value chain, from exploration to refining, create significant cost advantages and operational efficiencies.
↑Technological Expertise and R&D
Decades of experience in complex extraction and refining technologies, coupled with substantial R&D investment, provide a competitive edge in efficiency and discovery.
↑Access to Prime Reserves
Control over large, high-quality, and often long-life oil and gas reserves globally provides a foundational advantage in supply and future production.
INVESTMENT RISKS
↓Commodity Price Volatility
XOM's profitability is inherently tied to fluctuating global oil and gas prices, which can be influenced by geopolitical events and supply/demand dynamics.
↓Geopolitical Instability
Operations in diverse regions expose XOM to risks from political unrest, sanctions, and changes in national energy policies.
↓Environmental, Social, and Governance (ESG) Concerns
Increasing investor and public scrutiny on ESG performance can lead to reputational damage, divestment, and increased compliance costs.
Base case
XOM base case PE valuation
Intrinsic Value
$130.08
Margin of safety
-19.8%
Expected annual return
-3.6%
Base case assumptions: 1.7% annual earnings growth, 26x 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 XOM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Exxon Mobil Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
26.4x
PEG Ratio
n/m
Earnings Yield
3.88%
ROE (TTM)
9.8%
Revenue/Share (TTM)
$77.94
Dividend Yield
2.62%
Debt/Equity
0.19x
Frequently Asked Questions
What is the PE ratio of XOM?
The trailing twelve-month PE ratio of XOM reflects how much investors pay per dollar of Exxon Mobil Corporation's earnings. This metric is most useful when compared to Oil & Gas Integrated peers and the company's own historical range.
Is XOM overvalued based on PE ratio?
XOM's PE of 26.4x combined with a PEG ratio of -1.21 provides a growth-adjusted perspective. XOM 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 Integrated, a DCF analysis may be more appropriate.
How do I value XOM stock using PE ratio?
To value Exxon Mobil Corporation using PE: (1) Compare the current PE (26.4x) against the Oil & Gas Integrated median to assess relative pricing, (2) check the PEG ratio (-1.21) 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 XOM?
XOM's PEG ratio is -1.21, calculated by dividing the PE ratio (26.4x) by the expected earnings growth rate. Because XOM 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 XOM stock valuation?
PE ratio gives a quick relative read — how XOM 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 XOM 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 XOM 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.