Chevron Stock Valuation

CVX -  USA Stock  

USD 126.91  1.54  1.20%

Do you wonder what the value of Chevron Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Chevron Corp, is its stock price multiplied by the total number of shares outstanding, calculating Chevron Corp's enterprise value requires a different approach. It uses Chevron Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to rise to about 6 B in 2022. Enterprise Value is likely to rise to about 243.4 B in 2022.
Chevron Corp shows a prevailing Real Value of $137.29 per share. The current price of the firm is $126.91. At this time, the firm appears to be undervalued. Our model approximates the value of Chevron Corp from analyzing the firm fundamentals such as return on equity of 7.41 %, and Profit Margin of 7.36 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.

Chevron Valuation 

 
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Chevron Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Chevron Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
126.91
24th of January 2022
Share
Please note that Chevron Corp's price fluctuation is very steady at this time. Calculation of the real value of Chevron Corp is based on 3 months time horizon. Increasing Chevron Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Chevron Corp is useful when determining the fair value of the Chevron stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Chevron Corp. Since Chevron Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chevron Stock. However, Chevron Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
114.22
Downside
137.29
Real Value
138.49
Upside
Estimating the potential upside or downside of Chevron Corp helps investors to forecast how Chevron stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Chevron Corp more accurately as focusing exclusively on Chevron Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
7.638.429.40
Details
Hype
Prediction
LowEstimated ValueHigh
125.39126.59127.79
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.963.043.13
Details
17 Analysts
Consensus
LowTarget PriceHigh
105.00128.94155.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Chevron Corp's intrinsic value based on its ongoing forecasts of Chevron Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Chevron Corp's closest peers. When choosing an evaluation method for Chevron Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Chevron Corp Investments

41.25 BillionShare

Chevron Valuation Drivers Correlation

Many accounts on the financial statements of Chevron Corp are highly interrelated and sometimes correlated. Consequently, when conducting Chevron's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Chevron
Click cells to compare fundamentals

Chevron Valuation Trend

Knowing Chevron Corp's actual value is paramount for traders to make sound investment determinations. Chevron Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Chevron Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Chevron Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Chevron Market Cap

Chevron Corp is number one stock in market capitalization category among related companies. Market capitalization of Oil & Gas Integrated industry is currently estimated at about 426.45 Billion. Chevron Corp totals roughly 248.5 Billion in market capitalization claiming about 58% of all equities under Oil & Gas Integrated industry.
Capitalization  Revenue  Total debt  Valuation  Workforce

Chevron Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Chevron Corp's current stock value. Our valuation model uses many indicators to compare Chevron Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Chevron Corp competition to find correlations between indicators driving Chevron Corp's intrinsic value. More Info.
Chevron Corp is number one stock in five year return category among related companies. It is rated second in price to book category among related companies fabricating about  0.41  of Price to Book per Five Year Return. The ratio of Five Year Return to Price to Book for Chevron Corp is roughly  2.45 . Price to Book Value is likely to rise to 1.18 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chevron Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chevron Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chevron Corp's earnings, one of the primary drivers of an investment's value.

About Chevron Corp Valuation

The equity valuation mechanism determines the current worth of Chevron Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Chevron Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Chevron Corp based exclusively on its fundamental and basic technical indicators. By analyzing Chevron Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Chevron Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Chevron Corp. We calculate exposure to Chevron Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chevron Corp's related companies.
Last ReportedProjected for 2022
Gross Profit17.4 B17.9 B
Profit Margin(0.05) (0.05) 
Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California. Chevron Corp operates under Oil Gas Integrated classification in the United States and is traded on New York Stock Exchange. It employs 47736 people.

Chevron Corp Quarterly Enterprise Value

231.69 BillionShare
Chevron Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Chevron Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of Chevron Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Chevron Corp represents a small ownership stake in the entity. As a stockholder of Chevron, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Chevron Corp Dividends Analysis For Valuation

Payment of Dividends and Other Cash Distributions is likely to drop to about (9.4 B) in 2022. Dividend Yield is likely to drop to 0.06 in 2022. Chevron Corp Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Chevron Corp reported Accumulated Retained Earnings Deficit of 184.43 Billion in 2021. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to rise to about 11.8 B in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop (6.2 B) in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-8.7 B-9.4 B
Dividend Yield 0.07  0.06 
Dividends per Basic Common Share 5.93  5.55 
There are various types of dividends Chevron Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Chevron shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Chevron Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Chevron pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Chevron Corp by the value of the dividends paid out.

Chevron Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Chevron Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.88
Revenue Growth77.30%
Payout Ratio101.54%
Enterprise Value To Ebitda9.86
Enterprise Value To Revenue2.09

Chevron Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Chevron Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Chevron we look at many different elements of the entity such as Chevron's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Chevron Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Chevron Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Chevron Corp's worth.
Continue to Trending Equities. Note that the Chevron Corp information on this page should be used as a complementary analysis to other Chevron Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Chevron Corp price analysis, check to measure Chevron Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chevron Corp is operating at the current time. Most of Chevron Corp's value examination focuses on studying past and present price action to predict the probability of Chevron Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Chevron Corp's price. Additionally, you may evaluate how the addition of Chevron Corp to your portfolios can decrease your overall portfolio volatility.
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Is Chevron Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chevron Corp. If investors know Chevron will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chevron Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Chevron Corp is measured differently than its book value, which is the value of Chevron that is recorded on the company's balance sheet. Investors also form their own opinion of Chevron Corp's value that differs from its market value or its book value, called intrinsic value, which is Chevron Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chevron Corp's market value can be influenced by many factors that don't directly affect Chevron Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chevron Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Chevron Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chevron Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.