Understanding Asset Value

Report Generated
2026-02-02 15:49:43
CVX
Chevron Corporation
$174.75
Price from Yahoo Finance
Today: -1.27% | YTD: +12.1%

How Chevron Corporation Makes Money

Income Statement Flow (TTM) | Source: Yahoo Finance

Revenue
$187.0B
Gross Profit
$54.7B
29% margin
Operating Income
$15.1B
8% margin
Net Income
$12.8B
7% margin

Current Price

Price $174.75
52-Week High $177.30
52-Week Low $132.04

Market Data

Market Cap $349.39B
Shares Outstanding 1.98B
Beta 0.67

Valuation Ratios

P/E (TTM) 26.36x
P/E (Forward) 19.11x
EV/EBITDA 2.60x

Financial Health

Profit Margin 6.6%
ROE 28.6%
Revenue Growth -6.0%

AVOID

Fair Value: $127.13

-27.3% Downside

Stock appears overvalued with 27.3% downside risk. Consider waiting for better entry point.

Investment Verdict

Chevron Corporation (CVX) currently trades at $174.75, representing a -27.3% premium to our calculated fair value of $127.13.

Key Strengths: Strong balance sheet (Net Debt/EBITDA: 1.0x); Strong interest coverage (14.3x); Low short interest.

Key Risks: Declining revenue (-6.0%).

Wall Street consensus is buy with a mean price target of $182.21.

Business Simplicity Filter

CriterionStatusNotes
≤4 operating segments PASS Segment count estimated from sector classification. Verify in 10-K for accuracy.
Top 2 segments ≥70% of revenue PASS Revenue concentration estimated. Verify segment breakdown in 10-K.
≤3 material geographic regions PASS Most US-listed companies report US vs International (2 regions).
No exotic debt instruments or off-balance-sheet complexity PASS Review 10-K for convertibles, derivatives, and off-balance-sheet items.

Recommendation: PROCEED TO VALUATION

Company Profile

Sector Energy
Employees 0
Country United States

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment engages in the exploration, development, production, and transportation of crude oil and natural gas; liquefaction, transportation, and regasification of liquefied natural gas; transporting crude oil through pipelines; processing, transporting, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels; transports crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufactures and markets commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in Houston, Texas.

Enterprise Value Calculation

Market Capitalization $349.39B
(+) Total Debt $41.54B
(-) Cash & Equivalents $7.73B
Net Debt $33.82B
Enterprise Value $383.20B
EV = Market Cap + Total Debt - Cash = $349.39B + $41.54B - $7.73B = $383.20B

Leverage & Solvency

MetricValueWhat It Means
Net Debt / EBITDA 1.02x Strong
Interest Coverage 14.3x Very Strong
Debt / Equity 21.2% Conservative
Current Ratio N/A Review - may struggle with short-term obligations

Overall: Balance sheet is strong with conservative leverage.

Peer Comparison

Industry: Oil & Gas Integrated | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance

CompanyMarket CapP/EForward P/EEV/EBITDAProfit Margin
XOM $584.7B 20.7x 16.6x 10.6x 8.9%
CVX (Target) $349.4B 26.4x 19.1x 2.6x 6.6%
SHEL $214.7B 15.5x 11.8x 10.1x 5.4%
TTE $153.9B 11.6x 11.1x 5.5x 7.7%
BP $97.7B 60.9x 13.4x 22.6x 0.8%
Peer Average (excl. target) - 15.5x 12.6x 10.1x 6.6%

Intrinsic Value Calculation

MethodInputsFair Value
Equity (TTM EPS) EPS: $6.63 x 13.9x P/E $92.16
Equity (Forward EPS) EPS: $9.15 x 13.9x P/E $127.13
EV-Based (EBITDA) EBITDA: $33.20B x 9.1x $135.52
Headline Fair Value Median value used (spread 36.7% exceeds 15% threshold) $127.13
Fair Multiples Basis: Fair P/E of 13.9x and EV/EBITDA of 9.1x. Multiples adjusted for below-average growth.

Sensitivity Analysis

P/E Multiple Sensitivity (using TTM EPS)

Low (12x)
Base (14x)
High (16x)
$78.90
$92.16
$105.42

EV/EBITDA Multiple Sensitivity

Low (8x)
Base (9x)
High (10x)
$118.75
$135.52
$152.28

Red / Green Dashboard

Green Factors (Positive)

  • Strong balance sheet (Net Debt/EBITDA: 1.0x)
  • Strong interest coverage (14.3x)
  • Low short interest
  • Positive analyst consensus (buy)
  • Active share buyback program
  • Dividend yield: 387.00%

Red Factors (Concerns)

  • Declining revenue (-6.0%)

Assessment: Strong positive profile with multiple favorable factors.

Seasoned Analyst Perspective

Valuation Context

CVX trades at 26.4x TTM P/E and 19.1x Forward P/E. This compares to peer averages of 15.5x TTM and 12.6x Forward P/E.

Cash Flow Quality

Cash flow data unavailable for detailed analysis.

Analyst Consensus

24 analysts cover this stock with a consensus buy rating. Price targets range from $162 to $212, with a mean of $182.

Market Sentiment Indicators

VIX
VIX (Fear Index)

16.52 - Neutral/Low Fear

Neutral/Low Fear
F&G
CNN Fear & Greed Index

Score: 61/100

Greed
SKEW
CBOE SKEW Index (Tail Risk)

143.65

Elevated Tail Risk Concerns
MKT
Market Breadth

SPY YTD: 17.7% | RSP YTD: 12.3%

Moderately Narrow

Supply Chain Analysis

No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.

Earnings Surprise History (Last 8 Quarters)

Track Record: 6 beats, 2 misses, 0 in-line out of 8 quarters | 75% Beat Rate

DateEPS EstimateEPS ActualResultSurprise %
2026-01-30 $1.44 $1.52 BEAT 5.2%
2025-10-31 $1.53 $1.82 BEAT 18.8%
2025-08-01 $1.74 $1.77 BEAT 1.7%
2025-05-02 $2.15 $2.18 BEAT 1.3%
2025-01-31 $1.94 $1.84 MISS -5.4%
2024-11-01 $2.42 $2.51 BEAT 3.9%
2024-08-02 $3.00 $2.55 MISS -14.9%
2024-04-26 $2.91 $2.93 BEAT 0.6%
Average Earnings Surprise: 1.4% (Company tends to beat estimates)

Analyst Data

Price Targets

High Target $212.00
Mean Target $182.21
Low Target $162.00

Consensus

Recommendation buy
# of Analysts 24

Data Sources & Citations

All financial data sourced from:

Click any blue number throughout the report to view its source.

Disclaimer

This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.

Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.

Why Levered Free Cash Flow Matters

Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.

This metric shows how much actual cash the company generates after paying for:

A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.

Why Customer & Supplier Earnings Matter

Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.

Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.

Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.

By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.

Why Segment Breakdown Matters

Not all revenue is equal. Different business segments have different growth rates and profit margins.

For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.

Watch for: