Is Occidental Petroleum Corp. overvalued or undervalued?

As of 7 April 2025, the valuation grade for Occidental Petroleum Corp. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 10, an EV to EBIT of 11.28, and an EV to EBITDA of 5.14. In comparison, peers such as ConocoPhillips have a significantly higher P/E ratio of 22.15, while EOG Resources, Inc. stands at a fair valuation with a P/E of 10.43.
Despite a recent decline in stock performance, with a year-to-date return of -11.05% compared to the S&P 500's 2.44%, the valuation metrics suggest that Occidental Petroleum Corp. is not positioned favorably in the current market. The company's ROCE of 10.92% and ROE of 13.46% further indicate that while it is generating returns, the valuation does not justify its current price level.