Is Chevron Corp. overvalued or undervalued?

As of 17 October 2025, Chevron Corp. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is overvalued, as reflected by its P/E ratio of 20, which is notably higher than its peer Exxon Mobil Corp. at 28.35 and Hess Corp. at 16.91. Additionally, Chevron's EV to EBITDA stands at 9.77, while its EV to Sales is 1.77, both of which suggest a premium valuation compared to industry norms.
In terms of performance, Chevron's stock has shown mixed results against the S&P 500, with a year-to-date return of 5.69% compared to the index's 13.30%, and a one-year return of 1.24% against 14.08%. This performance, alongside its very expensive valuation grade, reinforces the conclusion that Chevron Corp. is currently overvalued in the market.