Exxon Mobil Corp. (NYSE:XOM)

Price to Earnings (P/E) Ratio

The P/E ratio values are missing in the earlier years up to 2020. Starting from March 31, 2022, the P/E ratio exhibits a generally increasing trend. The ratio begins around 14.11 and declines to a low of 7.58 by June 30, 2023, indicating a potential undervaluation or increased earnings during this period. Subsequently, there is a steady climb rising to 15.47 by December 31, 2024, followed by a moderate decrease towards mid-2025. Overall, after the initial dip, the ratio suggests increasing market valuation relative to earnings in recent periods.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio demonstrates a pattern similar to the P/E ratio with data commencing from March 31, 2022. Starting at 9.86, it decreases sharply to 5.28 by June 30, 2023, potentially indicating improved operating profitability relative to market price. After this low point, the ratio rises steadily to approximately 10.23 by March 31, 2025, signaling increased market valuation compared to operating profit. This pattern points to fluctuations in operating earnings and market perceptions influencing valuation multiples.

Price to Sales (P/S) Ratio

This ratio is reported starting from March 31, 2020, with slight fluctuations through the timeline. From initial values around 1.12 to 1.43 in 2020 and early 2021, a gradual upward trajectory is noted, peaking at 1.53 by September 30, 2024. Following this peak, the ratio slightly declines to 1.31 by June 30, 2025. The steady increase over several years indicates improving market valuation relative to sales, with some moderation towards the latest quarter.

Price to Book Value (P/BV) Ratio

Beginning at approximately 1.02 in March 31, 2020, the P/BV ratio shows variability through 2020 with a low near 0.79 and a rise to 1.93 by December 31, 2021. The ratio continues to climb, reaching a peak of 2.43 in September 30, 2022. Subsequently, the ratio declines gradually to 1.69 by March 31, 2025. This pattern shows early volatility, followed by a peak indicating higher market valuation relative to book value, and then a gradual normalization or reduced valuation in the latest periods.

Overall Insights

The data indicate that valuation multiples, including P/E, P/OP, and P/S ratios, experienced a significant decline during mid-2023, possibly reflecting increased earnings or operating profit relative to market price. Following that period, these ratios have risen steadily, suggesting renewed investor confidence or higher market valuation. The P/BV ratio exhibited early volatility with a significant peak in late 2022, followed by a gradual decline, which may reflect changes in asset valuations or market sentiment toward book assets. The combined trends suggest fluctuating market valuation frameworks influenced by earnings, operating profits, sales performance, and asset values over the analyzed quarterly periods.

Share Price Trends

The share price exhibited significant volatility over the observed periods. Starting around $44 in early 2020, it dipped notably to approximately $33 by the third quarter of 2020. From that low point, the price recovered markedly, climbing steadily through 2021 and 2022. It peaked at around $110 in late 2022 and early 2023, maintaining a generally elevated level above $100 throughout 2023 and into 2024. However, fluctuations continued within this higher range, with modest declines and recoveries evident during 2024 and the first half of 2025.

Earnings Per Share (EPS) Development

EPS data were not available for the first half of 2020 but showed a negative trend beginning in the third quarter of 2020, reaching a low of -5.3 US dollars. This negative performance recovered gradually across 2021, turning positive by the last quarter of 2021 with a positive EPS of 5.44 US dollars. From this point, EPS increased substantially through 2022 and early 2023, peaking at approximately 14.52 US dollars. After this peak, EPS showed a declining trend through 2023 and 2024, settling around 7 to 8 US dollars by early 2025, indicating some weakening in profitability but maintaining positive earnings.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio was unreported during much of 2020 and early 2021, likely due to the negative EPS values. Following the return to positive EPS in late 2021, the P/E ratio ranged initially between roughly 7.6 and 14 across the subsequent quarters. Notably, the ratio decreased to single-digit levels around mid-2022, reflecting relatively high earnings in comparison to share price. However, from late 2022 through 2024, the P/E ratio rose gradually, reaching just above 15 at times. This rise suggests either an increase in market valuation relative to earnings or a moderation in earnings growth during this period.

Overall Observations

Financial performance and market valuation showed a recovery from the sharp downturn experienced in 2020, with steady improvement in both EPS and share price through 2021 and 2022. Despite some attenuation in EPS growth starting in 2023, the share price remained relatively resilient, supported by a moderate increase in the P/E ratio. This indicates sustained investor confidence despite a softening in earnings growth rates. The data suggest a company transitioning back to stable profitability with market valuations reflecting cautious optimism.

Share Price Trend

The share price showed significant volatility over the periods analyzed. Initially, it decreased from the first quarter of 2020 through the third quarter of 2020, reaching a low point of 33.23 US$. Following that, there was a substantial recovery and consistent growth through 2021 and 2022, peaking at 110.1 US$ in the first quarter of 2023. After this peak, the price exhibited a slight downward correction with fluctuations, ending moderately lower at 107.37 US$ by the second quarter of 2025, though still higher than pre-2021 levels.

Operating Profit per Share (OP) Performance

Operating profit per share was negative or unavailable for the early quarters in 2020. Starting from the fourth quarter of 2020, the OP per share showed a gradual improvement from a negative value (-6.26 US$) to positive territory by the fourth quarter of 2021 at 7.79 US$. Subsequently, OP per share increased steadily, peaking at 20.85 US$ in the second quarter of 2023. From this high, the OP per share experienced a declining trend although remaining positive, settling at 10.85 US$ in the second quarter of 2025.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio was not available for the earlier quarters but became calculable starting in the fourth quarter of 2021. Initially, the ratio was moderate at 9.86, then it slightly increased to 10.28 in the following quarter before falling to a low of 5.28 in the second quarter of 2023, indicating a higher operating profit relative to share price. After this low point, the ratio returned to higher levels, fluctuating between approximately 6 and nearly 10, finishing at 9.89 by the second quarter of 2025. This suggests that the market valuation in relation to operating profits experienced compression during peak profit intervals and expansion during profit declines.

Overall Insights

The data reveals a recovery from an adverse operating profit situation in 2020 to robust profitability by mid-2023, followed by a moderate decline. Share prices mirrored the improvement in operating profit but with relatively smoother cyclical adjustments. The inverse movements in the P/OP ratio during periods of rising and falling profitability reflect changing investor perceptions and valuation metrics over time.

The financial metrics analyzed exhibit distinct patterns and notable fluctuations over the period under review, signaling various phases in market valuation and sales performance.

Share Price (US$):

The share price demonstrates volatile behavior with a general upward trajectory from early 2020 through mid-2022. Initially, prices were in the 40s, followed by a dip around September 2020, then a steady increase peaking near $110 in late 2022. After this peak, the price experienced some declines and moderate fluctuations, settling in the range of approximately $103 to $119 through early 2025. This pattern suggests periods of strong investor confidence tempered by occasional market corrections or external factors influencing valuation.

Sales per Share (US$):

Sales per share data, commencing from the first quarter of 2021, show a rising trend from $42.18 to a high of approximately $97.93 by early 2023. Following this peak, sales per share declined consistently through 2023 and into 2024, dropping to the mid-70s by early 2025. This indicates robust sales growth until early 2023, succeeded by a noticeable slowdown or contraction in sales over the subsequent periods.

Price-to-Sales Ratio (P/S):

The price-to-sales ratio fluctuated within a range roughly between 1.08 and 1.53. After starting at about 1.34 in early 2021, it experienced minor oscillations with a slight downward trend approaching mid-2022. Subsequently, the ratio increased, reaching the highest values around 1.5 to 1.53 during 2024, and then exhibited a mild decrease toward the end of the observation period. This implies that despite the decrease in sales per share post-2023, the market continued to assign relatively higher values per unit of sales, potentially reflecting expectations of future growth or other qualitative factors impacting valuation.

The analysis of the quarterly financial data reveals several noteworthy trends in market valuation and book value metrics over the observed periods.

Share Price

The share price exhibited significant volatility initially, with a decline from $43.99 at the end of March 2020 to a low of $33.23 in September 2020, likely reflecting adverse market conditions. Following this trough, a pronounced upward trajectory is evident, peaking around December 2022 at approximately $109.73. Post this peak, the share price experiences moderate fluctuations, generally maintaining a level between $100 and $120 through the subsequent periods into mid-2025, indicating relative stability at a higher valuation compared to earlier periods.

Book Value Per Share (BVPS)

The book value per share shows a mild decline from $43.06 in March 2020 to $37.12 by December 2020, aligning with broader market pressures during that period. From 2021 onward, BVPS demonstrates a consistent upward trend, rising from approximately $37.08 in early 2021 to $61.59 by June 2025. This steady growth suggests ongoing improvements in the company's net asset position or retained earnings, reflecting a strengthening fundamental base.

Price to Book Value Ratio (P/BV)

The P/BV ratio fluctuated notably during the initial quarters, dropping to a low of 0.79 in September 2020, coinciding with the reduced share price and BVPS. Subsequently, the ratio increased sharply, peaking near 2.43 by the third quarter of 2022. This elevated P/BV ratio indicates a period when market valuation outpaced book value significantly, possibly driven by investor optimism or favorable market conditions. After this peak, the ratio generally trends downwards, though remaining above 1.5, suggesting a market valuation consistently above book value but with some moderation in investor sentiment over time.

Overall, the data reflects recovery and growth after an initial period of market stress around mid-2020. The increasing book value per share supports a stronger asset base, while the share price trend and P/BV ratio indicate evolving market perceptions that have moderated after peak enthusiasm. Together, these patterns highlight a period of resurgence and relative stabilization in market confidence and company fundamentals.