Is Occidental Petroleum Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Occidental Petroleum Corp. moved from fair to very expensive. The company appears overvalued based on several key metrics, including a P/E ratio of 10, which is significantly higher than its peers like Diamondback Energy, Inc. at 9.24 and Devon Energy Corp. at 7.47. Additionally, the EV to EBITDA ratio stands at 5.14, while peers such as Marathon Oil Corp. show a ratio of 6.01, indicating a premium valuation for Occidental.
In terms of performance, the stock has underperformed relative to the S&P 500, with a year-to-date return of -17.22% compared to the index's 13.30%. This trend is further reflected in the one-year return of -20.92% against the S&P 500's 14.08%, reinforcing the notion that the company's current valuation may not be justified given its recent performance.