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Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Exxon Mobil.

Our Discounted Cash Flow (DCF) analysis suggests Exxon Mobil is undervalued by 60.0%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

The price-to-earnings (PE) ratio is one of the most relied-on metrics for valuing profitable companies like Exxon Mobil. It puts the market price in context with actual earnings power. Since Exxon generates stable profits, the PE helps investors compare its evaluation against similar opportunities in the market.

Interpreting what a “fair” PE looks like involves more than just comparing numbers. Higher expected earnings growth or lower risks usually justify a higher PE, while greater uncertainty or industry challenges would suggest a discount. Other factors such as profit margins and company size also play a part, so direct comparison with peers has its limitations.

Right now, Exxon trades at a PE ratio of 15.9x. That is above the oil and gas industry average of 12.8x but below the peer group average of 22.0x. To bring all the relevant factors together, Simply Wall St calculates a “Fair Ratio,” which for Exxon stands at 21.7x. This proprietary metric is more insightful than standard peer or industry averages because it factors in the company’s specific growth outlook, profit margins, market cap, and inherent risks. With Exxon’s current PE falling well below its Fair Ratio, the company appears undervalued on this basis.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Earlier, we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personal story, built around assumptions about a company’s future revenue, earnings, margins, and ultimately, what you think is a fair value. It connects the latest business outlook with real numbers.

Instead of relying solely on broad market averages or consensus figures, Narratives let you define your view of Exxon Mobil’s future. This links concrete forecasts to a valuation and gives you a clear rationale for your buy, hold, or sell decision. Available to everyone through Simply Wall St’s Community page, Narratives are an accessible tool for all investors, whether you are a beginner or an expert.

Narratives are also dynamic. When fresh news or earnings reports emerge, your fair value and rationale update automatically, keeping your investment thesis current. This makes it much easier to track your assumptions versus reality and adjust your strategy when it matters most.

For example, some users currently project a fair value for Exxon Mobil as high as $174 per share, while others see a more conservative estimate around $126 per share. Your Narrative instantly shows how your outlook compares, helping you make smarter, more informed decisions.

Do you think there’s more to the story for Exxon Mobil? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XOM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Nextracker’s Price-to-Earnings ratio is 25.2 times, which is below the peer average of 40.7 times and sector average of 30.7 times, but its $98.28 share price stands above the DCF fair value estimate of $88.82, highlighting a disconnect between market optimism and discounted cash flow fundamentals.

• From the analysts’ consensus view, this valuation gap suggests that investors are awarding a quality premium for steady results and a robust growth profile, but the current share price exceeds both fair value and consensus price targets, creating friction if growth trends slow.

  • To match consensus targets, the market would need confidence in future earnings reaching $663.3 million and a sustained PE of 22 times, which is noticeably different from today’s higher multiple and more moderate recent earnings growth.

  • The current valuation puts added pressure on management to deliver ambitious revenue and margin milestones, or risk near-term price adjustment if sentiment shifts.

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Nextracker on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.

Have a unique take on the figures above? Share your own perspective in just a few minutes and shape the story by Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Nextracker.

Nextracker’s share price commands a premium to fair value and is under pressure to maintain margins as revenue growth moderates and costs rise.

If you’re seeking better value or lower risk of overpricing, compare alternatives using these 881 undervalued stocks based on cash flows for companies where market optimism is better supported by fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NXT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com