Occidental Petroleum Corporation

NYSE:OXY Stock Report

Market Cap: US$47.4b

Occidental Petroleum Valuation

Is OXY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of OXY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OXY ($50.91) is trading below our estimate of fair value ($84.44)

Significantly Below Fair Value: OXY is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OXY?

Key metric: As OXY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for OXY. This is calculated by dividing OXY's market cap by their current earnings.
What is OXY's PE Ratio?
PE Ratio13.5x
EarningsUS$3.53b
Market CapUS$47.39b

Price to Earnings Ratio vs Peers

How does OXY's PE Ratio compare to its peers?

The above table shows the PE ratio for OXY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.5x
CVX Chevron
17.4x7.0%US$286.8b
XOM Exxon Mobil
15.7x4.9%US$521.4b
LNG Cheniere Energy
13.6x-8.3%US$49.4b
MPLX MPLX
11.3x3.7%US$48.7b
OXY Occidental Petroleum
13.5x9.1%US$47.4b

Price-To-Earnings vs Peers: OXY is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (14.5x).

Price to Earnings Ratio vs Industry

How does OXY's PE Ratio compare vs other companies in the US Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
OXY 13.5xIndustry Avg. 11.7xNo. of Companies15PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OXY is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the US Oil and Gas industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is OXY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OXY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: OXY is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OXY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$50.91
US$62.96
+23.7%
13.4%US$89.00US$54.00n/a27
Nov ’25US$49.57
US$64.22
+29.6%
13.3%US$89.00US$54.00n/a27
Oct ’25US$53.25
US$67.88
+27.5%
13.4%US$89.00US$53.00n/a25
Sep ’25US$56.98
US$71.44
+25.4%
11.0%US$89.00US$58.00n/a25
Aug ’25US$59.38
US$71.38
+20.2%
10.1%US$85.00US$53.00n/a24
Jul ’25US$62.88
US$71.65
+14.0%
10.6%US$90.00US$53.00n/a23
Jun ’25US$62.50
US$71.61
+14.6%
10.6%US$90.00US$53.00n/a23
May ’25US$64.45
US$71.54
+11.0%
10.8%US$90.00US$57.00n/a24
Apr ’25US$66.38
US$66.22
-0.2%
7.9%US$77.00US$57.00n/a22
Mar ’25US$61.36
US$65.72
+7.1%
9.2%US$80.00US$56.00n/a22
Feb ’25US$57.32
US$67.20
+17.2%
10.9%US$85.00US$59.00n/a22
Jan ’25US$59.71
US$68.67
+15.0%
10.1%US$85.00US$59.00n/a23
Dec ’24US$58.83
US$70.25
+19.4%
9.5%US$85.00US$60.00n/a24
Nov ’24US$61.36
US$70.32
+14.6%
9.8%US$85.00US$60.00US$49.5725
Oct ’24US$64.88
US$68.92
+6.2%
9.7%US$85.00US$59.00US$53.2525
Sep ’24US$64.57
US$67.50
+4.5%
9.0%US$80.00US$57.00US$56.9824
Aug ’24US$62.64
US$66.42
+6.0%
9.3%US$81.00US$56.00US$59.3824
Jul ’24US$58.80
US$68.00
+15.6%
11.0%US$82.00US$54.00US$62.8824
Jun ’24US$58.12
US$68.96
+18.6%
12.7%US$87.00US$54.00US$62.5024
May ’24US$61.17
US$70.88
+15.9%
14.1%US$93.00US$53.00US$64.4526
Apr ’24US$62.43
US$70.81
+13.4%
13.7%US$93.00US$53.00US$66.3826
Mar ’24US$59.71
US$73.08
+22.4%
12.6%US$93.00US$57.00US$61.3626
Feb ’24US$63.50
US$74.77
+17.7%
13.5%US$100.00US$57.00US$57.3226
Jan ’24US$62.99
US$75.88
+20.5%
13.3%US$100.00US$57.00US$59.7126
Dec ’23US$68.80
US$76.62
+11.4%
13.9%US$100.00US$57.00US$58.8326
Nov ’23US$73.80
US$74.24
+0.6%
19.5%US$110.00US$44.00US$61.3626

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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