Is Chevron Corp. overvalued or undervalued?

As of 17 October 2025, Chevron Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, with a P/E ratio of 20, a Price to Book Value of 2.12, and an EV to EBITDA of 9.77. In comparison, its peers show a stark contrast, with Exxon Mobil Corp. having a P/E of 28.35 and an EV to EBITDA of 15.29, while Hess Corp. has a much lower P/E of 16.91 and an EV to EBITDA of 7.90, highlighting Chevron's relative overvaluation.
Despite a recent 1-week stock return of 2.81% compared to the S&P 500's 1.70%, Chevron's year-to-date return of 5.69% lags behind the S&P 500's 13.30%, and over the past three years, Chevron has declined by 5.10% while the benchmark soared by 81.19%. This performance further reinforces the notion that Chevron is overvalued in the current market environment.