EOG Resources, Inc. (EOG) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$160.92
PE Ratio (TTM)
12.5x
Intrinsic Value
$126.83
-26.9% margin of safety
COMPETITIVE MOAT
↑Proprietary Drilling Technology
EOG's advanced horizontal drilling and hydraulic fracturing techniques allow for efficient extraction of oil and gas from complex geological formations. This technological edge reduces costs and increases recovery rates.
↑Extensive Acreage Position
The company holds vast reserves of high-quality oil and gas acreage across key U.S. basins. This extensive land bank provides a long-term, low-cost inventory of drilling locations.
↑Operational Efficiency and Cost Leadership
EOG consistently demonstrates superior operational efficiency, leading to lower per-barrel production costs. This cost advantage allows for greater profitability and flexibility in varying commodity price environments.
INVESTMENT RISKS
↓Commodity Price Volatility
EOG's profitability is highly sensitive to fluctuations in oil and natural gas prices. Significant downturns in these markets can negatively impact revenue and earnings.
↓Geopolitical Instability
Global political events and supply disruptions can lead to unpredictable swings in energy prices and impact EOG's access to international markets or supply chains.
↓Execution Risk in New Plays
While EOG has a strong track record, the success of developing new, complex oil and gas plays carries inherent geological and operational risks. Unforeseen challenges can impact production and profitability.
Base case
EOG base case PE valuation
At a current price of $160.92, the base case PE valuation puts EOG fair value near $126.83 per share. That figure assumes -3.8% yearly earnings growth, a target PE multiple of 12.32x, and a 10% discount rate.
Intrinsic Value
$126.83
Margin of safety
-26.9%
Expected annual return
-4.6%
Base case assumptions: -3.8% annual earnings growth, 12.32x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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 EOG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for EOG Resources, Inc. respond.
Open PE Calculator for EOGCompany Overview
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the United States, the Republic of Trinidad and Tobago, and internationally. The company also offers crude oil and condensate, and gathering, processing and marketing. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
Financial Metrics — EOG PE Stock Valuation Data
PE Ratio (TTM)
12.5x
PEG Ratio
0.50
Earnings Yield
8.11%
ROE (TTM)
22.4%
Revenue/Share (TTM)
$50.85
Dividend Yield
2.54%
Debt/Equity
0.26x
Frequently Asked Questions
What is the PE ratio of EOG?
The trailing twelve-month PE ratio of EOG reflects how much investors pay per dollar of EOG Resources, Inc.'s earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is EOG overvalued based on PE ratio?
EOG's PE of 12.5x combined with a PEG ratio of 0.50 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 EOG stock using PE ratio?
To value EOG Resources, Inc. using PE: (1) Compare the current PE (12.5x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (0.50) 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 EOG?
EOG's PEG ratio is 0.50, calculated by dividing the PE ratio (12.5x) 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 EOG stock valuation?
PE ratio gives a quick relative read — how EOG is priced versus Oil & Gas Exploration & Production peers. DCF provides an absolute value based on projected free cash flows. For EOG, with a strong ROE of 22.4%, 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 EOG 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 EOG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.