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What do the Fundamentals Predict for Chevron Corporation (CVX) Stock?

Wednesday, August 02, 2023 03:43 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Chevron Corporation (CVX) Stock?

InvestorsObserver gives Chevron Corporation (CVX) a strong valuation score of 90 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. CVX currently holds a better value than 90% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 90
CVX gets a 90 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CVX!

Metrics Analysis

CVX has a trailing twelve month Price to Earnings (PE) ratio of 8.4 which places it below the histroical average of roughly 15. CVX is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. CVX's trailing-12-month earnings per share (EPS) of 18.52 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
CVX currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.85. The market is currently fairly valuing CVX in relation to its projected growth due to the PEG ratio being around the fair market value of 1. CVX's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

CVX' has a adequate valuation at its current share price on account of a fairly valued PEG ratio due to strong growth. CVX's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Chevron Corporation (CVX) stock.

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