Exxon Mobil Corporation (XOM) Fair Value & PE Analysis
Oil & Gas Integrated · NYSE
Current Price
$147.01
PE Ratio (TTM)
24.3x
Intrinsic Value
$190.87
+23.0% margin of safety
What Is Exxon Mobil Corporation's Fair Value?
As of 2026-06-12, applying a 24.0x earnings multiple to Exxon Mobil Corporation's (XOM) earnings per share of $6.05 yields a fair value estimate of $190.87 per share, versus a market price of $147.01.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $157.33 to $229.05. 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 our PE model works · Recalculate in PE mode · XOM intrinsic value (DCF view)
Is Exxon Mobil Corporation (XOM) Overvalued?
At $147.01, XOM trades about 23.0% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
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 PE valuation
Intrinsic Value
$190.87
Margin of safety
+23.0%
Expected annual return
+5.4%
Base case assumptions: 12.0% annual earnings growth, 24x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
24.3x
PEG Ratio
n/m
Earnings Yield
4.12%
ROE (TTM)
9.8%
Revenue/Share (TTM)
$77.94
Dividend Yield
2.78%
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 24.3x combined with a PEG ratio of -1.11 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 (24.3x) against the Oil & Gas Integrated median to assess relative pricing, (2) check the PEG ratio (-1.11) 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 -1.11, calculated by dividing the PE ratio (24.3x) 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.