EOG Resources, Inc. (EOG) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$136.65
PE Ratio (TTM)
13.2x
Intrinsic Value
$184.33
+25.9% margin of safety
COMPETITIVE MOAT
↑Low-Cost Producer Advantage
EOG excels at identifying and developing low-cost oil and gas reserves. This allows them to remain profitable even during commodity price downturns.
↑Technical Expertise
The company possesses deep technical expertise in unconventional resource development. This enables efficient extraction and maximizes recovery from complex geological formations.
↑Disciplined Capital Allocation
EOG demonstrates a disciplined approach to capital allocation, prioritizing returns and shareholder value. This focus helps maintain financial strength and operational efficiency.
INVESTMENT RISKS
↓Commodity Price Volatility
EOG's profitability is highly sensitive to fluctuations in oil and natural gas prices. Significant price drops can negatively impact revenue and earnings.
↓Regulatory Environment
Changes in environmental regulations and government policies can increase operating costs and limit exploration or production activities.
↓Geological Uncertainty
The success of exploration and production is inherently tied to geological factors. Unforeseen geological challenges can lead to lower-than-expected reserve quantities or higher development costs.
Base case
EOG base case PE valuation
A base case PE valuation for EOG estimates a fair value of about $184.33 per share, against a current price of $136.65. The model assumes 9.8% annual earnings growth, a 13x target PE multiple, and a 10% discount rate.
Intrinsic Value
$184.33
Margin of safety
+25.9%
Expected annual return
+6.2%
Base case assumptions: 9.8% annual earnings growth, 13x 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 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., alongside its subsidiaries, is actively involved in the exploration, development, production, and commercialization of crude oil, natural gas, and natural gas liquids. The company's primary operational hubs for production are located in New Mexico and Texas within the United States, as well as the Republic of Trinidad and Tobago. As of December 31, 2021, its total estimated net proved reserves amounted to 3,747 million barrels of oil equivalent. This figure comprised 1,548 million barrels of crude oil and condensate, 829 million barrels of natural gas liquids, and 8,222 billion cubic feet of natural gas. Formerly known as Enron Oil & Gas Company, EOG Resources, Inc. was established in 1985 and has its corporate headquarters in Houston, Texas.
Financial Metrics — EOG PE Stock Valuation Data
PE Ratio (TTM)
13.2x
PEG Ratio
n/m
Earnings Yield
7.56%
ROE (TTM)
18.3%
Revenue/Share (TTM)
$44.14
Dividend Yield
2.95%
Debt/Equity
0.27x
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 13.2x combined with a PEG ratio of -2.28 provides a growth-adjusted perspective. EOG 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 EOG stock using PE ratio?
To value EOG Resources, Inc. using PE: (1) Compare the current PE (13.2x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-2.28) 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 -2.28, calculated by dividing the PE ratio (13.2x) by the expected earnings growth rate. Because EOG 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 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 18.3%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.