Is ConocoPhillips overvalued or undervalued?

As of 8 May 2025, the valuation grade for ConocoPhillips has moved from very expensive to expensive, indicating a slight improvement in its valuation perspective. The company is currently considered overvalued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 8.84, and a Price to Book Value of 2.97.
In comparison to its peers, ConocoPhillips has a higher P/E ratio than EOG Resources, Inc. at 10.43 and Pioneer Natural Resources Co. at 13.11, both of which are classified as fairly valued. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -7.52% compared to the index's 2.44%. This combination of high valuation ratios and underperformance relative to peers suggests that ConocoPhillips is indeed overvalued in the current market context.