uploads///Peer Valuations

Looking 2 Years Out, Energy Stocks Trade at Respectable PEs


Sep. 8 2016, Updated 11:05 a.m. ET

Integrated energy stocks’ valuations

The two-year forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] and price-to-earnings (or PE) averages of ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP)—the four integrated energy companies we’ve been analyzing in this series—stand at 6.5x and 17.2x, respectively.

ExxonMobil (XOM) trades at an 8.1x EV-to-EBITDA multiple and a 20.2x price-to-earnings ratio, both above its peers’ averages.

Article continues below advertisement

On the other hand, RDS.A and BP trade lower than the peer averages on both valuation metrics. Chevron trades at a PE ratio of 21.6x, well above the peer average. However, CVX trades in line with the average EV-to-EBITDA. The iShares North American Natural Resources ETF (IGE) has an ~22% exposure to the sector.

To see which integrated energy stock has a higher institutional holding, continue to the next part.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.