Chevron Valuation Overview

CVX -- USA Stock  

USD 117.94  0.19  0.16%

Chevron shows prevailing Real Value of $106.9838 per share. The current price of the firm is $117.94. At this time the firm appears to be over valued. Macroaxis approximates value of Chevron from analyzing the firm fundamentals such as Profit Margin of 8.47% and Return On Equity of 8.10% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

Taking a look at a recent 8-K filing, we can see the numbers from their third quarter operations. The company reported earnings of $1.3 billion for the third quarter of 2016, compared with earnings of $2.0 billion in the third quarter of 2015. Sales and other operations revenues in the third quarter 2016 were $29 billion, compared to $33 billion in 2015 third quarter. These numbers are expected to be lower due to the low oil prices, but as the price begins to increase, this will certainly help these numbers increase.

Taking a look at the chart, we can see that price has been on steady increase from the year 2003. In mid 2015, we can see price retraced quite drastically and has also rebounded just as nicely. This is what I want to see in a chart because this means people are entering and taking profits, where as with price just going up, people haven’t taken profits on a massive scale. Right now might be a good entry area if you’re playing the ABC structure on the way up. Overall, the chart is looking good and moving with the fundamental numbers.

Valuation Drivers Correlation
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Chevron Corporation Valuation Data Drivers
Net Income Per Employee    Enterprise Value    Market Capitalization    
Chevron Market Cap
Chevron Corporation is rated second in market capitalization category among related companies. Market capitalization of Oil And Gas industry is currently estimated at about 648.32 Billion. Chevron totals roughly 225.89 Billion in market capitalization claiming about 35% of all equities under Oil And Gas industry.
Capitalization  Workforce  Revenue  Valuation  Total debt
 Time Horizon     30 Days    Login   to change
Chevron Corporation is rated second in five year return category among related companies. It is rated below average in beta category among related companies totaling about  0.29  of Beta per Five Year Return. The ratio of Five Year Return to Beta for Chevron Corporation is roughly  3.45 

Current Market Valuation

Chevron Valuation Boundaries
Over Valued
August 21, 2018
117.94
Market Value
Downside
103.29
106.98
Real Value
Target Odds
  
129.73
Upside
Chevron is not too risky asset. Calculation of real value of Chevron is based on 1 month time horizon. Increasing Chevron time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Check also Trending Equities. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.