Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Occidental Petroleum Corp., current price multiples
| Occidental Petroleum Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $42.54 | ||||||||
| No. shares of common stock outstanding | 984,439,742 | ||||||||
| Growth rate (g) | 14.65% | ||||||||
| Earnings per share (EPS) | $2.41 | ||||||||
| Next year expected EPS | $2.77 | ||||||||
| Operating profit per share | $4.45 | ||||||||
| Sales per share | $27.15 | ||||||||
| Book value per share (BVPS) | $34.70 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 17.62 | 34.85 | 20.59 | 23.94 | 21.19 | 20.90 | |||
| Price to next year expected earnings | 15.37 | 33.33 | 18.36 | 22.09 | 19.43 | 19.14 | |||
| Price-earnings-growth (PEG) | 1.20 | 7.64 | 1.69 | 2.86 | 2.34 | 2.27 | |||
| Price to operating profit (P/OP) | 9.55 | 20.15 | 12.15 | 16.33 | 13.82 | 13.78 | |||
| Price to sales (P/S) | 1.57 | 2.32 | 2.79 | 2.13 | 2.19 | 2.18 | |||
| Price to book value (P/BV) | 1.23 | 2.30 | 2.55 | 2.66 | 2.67 | 2.71 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Occidental Petroleum Corp., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
An analysis of valuation multiples from 2020 to 2024 reveals significant volatility in profitability-based ratios, contrasted by a more gradual evolution in revenue and asset-based multiples.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both profitability ratios exhibit a synchronized V-shaped trend. A sharp contraction occurred in 2022, with the P/E ratio falling to 4.24 and the P/OP ratio dropping to 3.78. This was followed by a consistent expansion through 2024, with the P/E ratio rising to 19.28 and the P/OP ratio increasing to 10.46. This pattern suggests a period of extreme valuation compression in 2022 followed by a steady recovery in the market premium attributed to earnings and operating profits.
- Price to Sales (P/S)
- The P/S ratio shows a steady upward trend, increasing from 1.39 in 2020 to a peak of 1.78 in 2023, before settling slightly at 1.72 in 2024. This indicates a gradual increase in the market's valuation of each dollar of revenue generated over the analyzed period.
- Price to Book Value (P/BV)
- The P/BV ratio peaked in 2021 at 1.79 and has since undergone a continuous decline, ending at 1.34 in 2024. This downward trajectory indicates that the market premium over the company's net asset value has diminished, returning to levels nearly identical to those observed in 2020.
Overall, the divergence between the expanding P/E and P/OP ratios and the contracting P/BV ratio suggests that current market valuation is increasingly driven by earnings performance rather than asset backing.
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Price to Earnings (P/E)
Occidental Petroleum Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 938,500,965 | 879,499,439 | 900,072,447 | 934,063,989 | 931,554,718 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common stockholders (in millions) | 2,377) | 3,773) | 12,504) | 1,522) | (15,675) | |
| Earnings per share (EPS)2 | 2.53 | 4.29 | 13.89 | 1.63 | -16.83 | |
| Share price1, 3 | 48.84 | 57.30 | 58.96 | 38.92 | 26.61 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 19.28 | 13.36 | 4.24 | 23.89 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 15.64 | 13.42 | 8.71 | 16.81 | — | |
| ConocoPhillips | 13.41 | 11.92 | 7.07 | 14.66 | — | |
| ExxonMobil Holdings Corp. | 14.21 | 11.49 | 8.01 | 14.11 | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 14.51 | 12.17 | 8.08 | 15.11 | — | |
| P/E Ratio, Industry | ||||||
| Energy | 14.41 | 12.48 | 8.54 | 15.67 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income (loss) attributable to common stockholders ÷ No. shares of common stock outstanding
= 2,377,000,000 ÷ 938,500,965 = 2.53
3 Closing price as at the filing date of Occidental Petroleum Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 48.84 ÷ 2.53 = 19.28
5 Click competitor name to see calculations.
The financial performance and valuation metrics between 2020 and 2024 exhibit a cycle of deep loss, rapid recovery, and subsequent normalization. A significant volatility in earnings is mirrored by fluctuating valuation multiples and a share price that peaked in 2022 before entering a gradual decline.
- Earnings per Share (EPS) Trends
- A sharp reversal in profitability occurred following a substantial loss of 16.83 USD per share in 2020. Earnings peaked in 2022 at 13.89 USD per share. Since that peak, a consistent downward trend has been observed, with EPS falling to 4.29 USD in 2023 and further decreasing to 2.53 USD by the end of 2024.
- Share Price Trajectory
- The share price followed an upward trajectory from 26.61 USD in 2020 to a maximum of 58.96 USD in 2022. This growth trend reversed after 2022, with the price softening to 57.30 USD in 2023 and ending the period at 48.84 USD in 2024.
- Price-to-Earnings (P/E) Ratio Interpretation
- The P/E ratio shows an inverse correlation with peak earnings. In 2022, the ratio compressed to its lowest point of 4.24 despite the highest EPS, suggesting the market priced in the earnings spike as a cyclical or temporary event. Conversely, as earnings declined through 2023 and 2024, the P/E ratio expanded to 13.36 and 19.28 respectively, indicating that the share price did not decline as steeply as the earnings per share.
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Price to Operating Profit (P/OP)
Occidental Petroleum Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 938,500,965 | 879,499,439 | 900,072,447 | 934,063,989 | 931,554,718 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 4,383) | 6,840) | 14,037) | 4,566) | (14,228) | |
| Operating profit per share2 | 4.67 | 7.78 | 15.60 | 4.89 | -15.27 | |
| Share price1, 3 | 48.84 | 57.30 | 58.96 | 38.92 | 26.61 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 10.46 | 7.37 | 3.78 | 7.96 | — | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 9.76 | 9.48 | 6.12 | 11.40 | — | |
| ConocoPhillips | 8.50 | 7.61 | 4.57 | 8.66 | — | |
| ExxonMobil Holdings Corp. | 9.57 | 7.62 | 5.65 | 9.86 | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.46 | 8.17 | 5.60 | 10.13 | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 9.50 | 8.44 | 5.95 | 10.52 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 4,383,000,000 ÷ 938,500,965 = 4.67
3 Closing price as at the filing date of Occidental Petroleum Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 48.84 ÷ 4.67 = 10.46
5 Click competitor name to see calculations.
The financial performance and valuation metrics exhibit significant volatility between 2020 and 2024, characterized by a sharp recovery in operational profitability followed by a subsequent decline and an expansion of the valuation multiple.
- Operating Profit Performance
- A profound transition is observed from 2020 to 2022, as operating profit per share moved from a loss of US$15.27 to a peak of US$15.60. Following this peak, a consistent downward trend emerged, with operating profit per share falling to US$7.78 in 2023 and further contracting to US$4.67 by the end of 2024.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio was not applicable in 2020 due to negative operating profits. Upon the return to profitability in 2021, the ratio was 7.96, before dropping to a period low of 3.78 in 2022. This low point coincided with the maximum operating profit per share, suggesting that the share price did not increase proportionally to the surge in operational earnings during that period.
- Valuation Trends and Divergence
- Between 2022 and 2024, the P/OP ratio underwent a steady expansion, rising to 7.37 in 2023 and reaching 10.46 in 2024. This trend indicates that while the share price declined from US$58.96 in 2022 to US$48.84 in 2024, the decline in operating profit per share was more severe, resulting in a higher valuation multiple relative to current earnings.
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Price to Sales (P/S)
Occidental Petroleum Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 938,500,965 | 879,499,439 | 900,072,447 | 934,063,989 | 931,554,718 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 26,725) | 28,257) | 36,634) | 25,956) | 17,809) | |
| Sales per share2 | 28.48 | 32.13 | 40.70 | 27.79 | 19.12 | |
| Share price1, 3 | 48.84 | 57.30 | 58.96 | 38.92 | 26.61 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.72 | 1.78 | 1.45 | 1.40 | 1.39 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.43 | 1.46 | 1.31 | 1.69 | — | |
| ConocoPhillips | 2.26 | 2.33 | 1.68 | 2.58 | — | |
| ExxonMobil Holdings Corp. | 1.41 | 1.24 | 1.12 | 1.17 | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.50 | 1.41 | 1.24 | 1.48 | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.50 | 1.46 | 1.31 | 1.52 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 26,725,000,000 ÷ 938,500,965 = 28.48
3 Closing price as at the filing date of Occidental Petroleum Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 48.84 ÷ 28.48 = 1.72
5 Click competitor name to see calculations.
Analysis of the valuation multiples from 2020 to 2024 reveals a shifting relationship between equity pricing and revenue generation. Between 2020 and 2022, a strong positive correlation existed between share price and sales per share, with both metrics peaking in 2022 at 58.96 US$ and 40.70 US$, respectively.
- Price to Sales (P/S) Trend
- The P/S ratio remained relatively constant between 2020 and 2022, moving from 1.39 to 1.45. This stability indicates that the market valuation during this period scaled proportionally with the growth in sales per share.
- Valuation Divergence
- A notable shift is observed in 2023 and 2024. While sales per share declined from the 2022 peak to 28.48 US$ by the end of 2024, the P/S ratio increased, reaching 1.78 in 2023 and 1.72 in 2024. This represents a decoupling where the share price did not contract as sharply as the revenue per share, resulting in an expansion of the valuation multiple despite falling sales.
- Equity Pricing Dynamics
- The share price experienced significant growth from 26.61 US$ in 2020 to a peak of 58.96 US$ in 2022. Although a downward trend followed, ending at 48.84 US$ in 2024, the valuation remains elevated compared to 2020 levels, supported by a higher P/S multiple.
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Price to Book Value (P/BV)
Occidental Petroleum Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 938,500,965 | 879,499,439 | 900,072,447 | 934,063,989 | 931,554,718 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 34,159) | 30,250) | 30,085) | 20,327) | 18,573) | |
| Book value per share (BVPS)2 | 36.40 | 34.39 | 33.43 | 21.76 | 19.94 | |
| Share price1, 3 | 48.84 | 57.30 | 58.96 | 38.92 | 26.61 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.34 | 1.67 | 1.76 | 1.79 | 1.33 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.81 | 1.78 | 1.94 | 1.89 | — | |
| ConocoPhillips | 1.91 | 2.65 | 2.75 | 2.61 | — | |
| ExxonMobil Holdings Corp. | 1.81 | 2.02 | 2.29 | 1.93 | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.83 | 2.00 | 2.21 | 2.00 | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 1.87 | 2.08 | 2.30 | 2.07 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 34,159,000,000 ÷ 938,500,965 = 36.40
3 Closing price as at the filing date of Occidental Petroleum Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 48.84 ÷ 36.40 = 1.34
5 Click competitor name to see calculations.
The valuation trends between 2020 and 2024 reflect a period of initial market expansion followed by a gradual contraction in the premium applied to the net asset value.
- Share Price Movement
- A significant upward trend is observed from 2020 to 2022, with the share price rising from 26.61 to a peak of 58.96. This growth was followed by a moderate decline over the subsequent two years, closing at 48.84 in 2024.
- Book Value per Share (BVPS) Progression
- BVPS demonstrated consistent and uninterrupted growth throughout the analyzed period. The value increased from 19.94 in 2020 to 36.40 in 2024, indicating a steady accumulation of net assets relative to the number of shares outstanding.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio peaked in 2021 at 1.79, representing the highest market premium relative to book value. Following this peak, a steady decline is observed, with the ratio retreating to 1.34 by 2024. This indicates that while the underlying book value continued to grow, the market's willingness to pay a premium over that value diminished over time.
The data reveals a decoupling between asset growth and market valuation in the latter part of the period. While the book value per share grew by approximately 82% from 2020 to 2024, the P/BV ratio returned to near-baseline levels, suggesting that the compression in the valuation multiple was driven primarily by the correction in the share price rather than a decline in equity value.
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