Is Hess Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Hess Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its P/E ratio of 16, which is lower than its peer Exxon Mobil Corp. at 28.35 but higher than Chevron Corp. at 28.78. Additionally, Hess Corp. has an EV to EBITDA ratio of 7.34 and a PEG ratio of 1.64, both of which suggest that the stock is trading at a premium compared to its peers.
In comparison to its industry, Hess Corp. shows a strong return on equity (ROE) of 23.56% and return on capital employed (ROCE) of 21.57%, which are positive indicators of operational efficiency. However, the stock's recent performance against the S&P 500 reveals a mixed picture, with a 1-year return of -4.16% compared to the S&P 500's 17.14%, while over a 5-year period, it has outperformed the index with a return of 211.2% versus 96.61%. Overall, the current valuation metrics suggest that Hess Corp. is overvalued in the market.