Is ConocoPhillips overvalued or undervalued?

As of 17 October 2025, the valuation grade for ConocoPhillips has moved from fair to expensive. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 20, which is higher than its peer EOG Resources at 10.65 and Pioneer Natural Resources at 13.11. Additionally, ConocoPhillips has an EV to EBITDA ratio of 15.51, compared to EOG's 5.34, further indicating a premium valuation relative to its peers.
The company's dividend yield stands at an impressive 193.06%, and its ROCE is 16.56%, suggesting strong returns on capital. However, the high valuation ratios combined with recent stock performance, where ConocoPhillips has underperformed the S&P 500 across multiple periods—most notably with a year-to-date return of -12.80% compared to the S&P's 13.30%—reinforces the conclusion that it is overvalued at this time.