CVX Valuation

Chevron Corp

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157.360

-0.84(-0.531%)1D

Overview
Forecast
Valuation
Earnings

CVX Relative Valuation

CVX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CVX is overvalued; if below, it's undervalued.

Historical Valuation

Chevron Corp (CVX) is now in the Fair zone, suggesting that its current forward PE ratio of 18.52 is considered Fairly compared with the five-year average of 14.92. The fair price of Chevron Corp (CVX) is between 36.07 to 215.93 according to relative valuation methord.

Relative Value

Fair Zone

36.07-215.93

Current Price：158.20

Fair

18.39

Trailing

Forward

7.41

EV/EBITDA

Chevron Corp. (CVX) has a current EV/EBITDA of 7.41. The 5-year average EV/EBITDA is 5.95. The thresholds are as follows: Strongly Undervalued below 4.22, Undervalued between 4.22 and 5.08, Fairly Valued between 6.81 and 5.08, Overvalued between 6.81 and 7.68, and Strongly Overvalued above 7.68. The current Forward EV/EBITDA of 7.41 falls within the Overvalued range.

15.32

EV/EBIT

Chevron Corp. (CVX) has a current EV/EBIT of 15.32. The 5-year average EV/EBIT is -21.74. The thresholds are as follows: Strongly Undervalued below -478.24, Undervalued between -478.24 and -249.99, Fairly Valued between 206.50 and -249.99, Overvalued between 206.50 and 434.75, and Strongly Overvalued above 434.75. The current Forward EV/EBIT of 15.32 falls within the Historic Trend Line -Fairly Valued range.

1.64

Chevron Corp. (CVX) has a current PS of 1.64. The 5-year average PS is 1.36. The thresholds are as follows: Strongly Undervalued below 1.05, Undervalued between 1.05 and 1.20, Fairly Valued between 1.52 and 1.20, Overvalued between 1.52 and 1.67, and Strongly Overvalued above 1.67. The current Forward PS of 1.64 falls within the Overvalued range.

8.14

P/OCF

Chevron Corp. (CVX) has a current P/OCF of 8.14. The 5-year average P/OCF is 6.85. The thresholds are as follows: Strongly Undervalued below 4.91, Undervalued between 4.91 and 5.88, Fairly Valued between 7.83 and 5.88, Overvalued between 7.83 and 8.80, and Strongly Overvalued above 8.80. The current Forward P/OCF of 8.14 falls within the Overvalued range.

14.12

P/FCF

Chevron Corp. (CVX) has a current P/FCF of 14.12. The 5-year average P/FCF is 11.12. The thresholds are as follows: Strongly Undervalued below 5.76, Undervalued between 5.76 and 8.44, Fairly Valued between 13.80 and 8.44, Overvalued between 13.80 and 16.49, and Strongly Overvalued above 16.49. The current Forward P/FCF of 14.12 falls within the Overvalued range.

Chevron Corp (CVX) has a current Price-to-Book (P/B) ratio of 1.87. Compared to its 3-year average P/B ratio of 1.84 , the current P/B ratio is approximately 1.53% higher. Relative to its 5-year average P/B ratio of 1.75, the current P/B ratio is about 6.60% higher. Chevron Corp (CVX) has a Forward Free Cash Flow (FCF) yield of approximately 5.02%. Compared to its 3-year average FCF yield of 8.00%, the current FCF yield is approximately -37.26% lower. Relative to its 5-year average FCF yield of 6.74% , the current FCF yield is about -25.54% lower.

1.85

P/B

Median3y

1.84

Median5y

1.75

5.02

FCF Yield

Median3y

8.00

Median5y

6.74

Competitors Valuation Multiple

The average P/S ratio for CVX's competitors is 1.32, providing a benchmark for relative valuation. Chevron Corp Corp (CVX) exhibits a P/S ratio of 1.64, which is 23.51% above the industry average. Given its robust revenue growth of -10.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Petroleo Brasileiro SA Petrobras

Canadian Natural Resources Ltd

2.46

-3.90%

63.70B

Performance Decomposition

Market capitalization of CVX increased by 6.36% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.17 to 20.22.

The secondary factor is the Revenue Growth, contributed -10.49%to the performance.

Overall, the performance of CVX in the past 1 year is driven by P/E Change. Which is more unsustainable.

-10.49%

49.57B → 44.38B

Revenue Growth

-36.72%

8.96 → 5.67

Margin Expansion

53.57%

13.17 → 20.22

P/E Change

6.36%