Is Chevron Corp. overvalued or undervalued?

As of 2 May 2025, Chevron Corp. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 20, an EV to EBITDA of 9.77, and a Price to Book Value of 2.12. In comparison, Exxon Mobil Corp., which is fairly valued, has a P/E of 27.69 and an EV to EBITDA of 15.30, while Hess Corp. is also very expensive with a P/E of 16.44 and an EV to EBITDA of 7.71.
Chevron's current price of 146.86 reflects a significant divergence from its peers, indicating that the stock may be priced too high relative to its earnings potential and industry standards. Additionally, while Chevron's recent stock performance has shown a slight gain of 1.39% year-to-date, it lags behind the S&P 500's return of 2.44%, further supporting the conclusion that the stock is overvalued.