Is Occidental Petroleum Corp. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Occidental Petroleum Corp. has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key valuation ratios include a P/E ratio of 10, an EV to EBITDA of 5.14, and a Price to Book Value of 1.39. In comparison, peers such as Diamondback Energy, Inc. have a P/E of 9.24, while Devon Energy Corp. shows a P/E of 7.47, suggesting that Occidental is trading at a premium relative to its peers.
While Occidental has shown strong returns over the past five years at 306.52%, it has underperformed compared to the S&P 500 over the same period, which returned 96.61%. This disparity in performance reinforces the notion that the stock may be overvalued given its current valuation metrics.