Chevron Traded at 38% Discount Despite Near-Record Run

Chevron's stock price has surged by 170.3% over the past five years, reaching near-record territory.

Despite this impressive run, both the Discounted Cash Flow (DCF) intrinsic value estimate and market-based multiples indicate that the shares are undervalued relative to their track record.

The DCF model values Chevron on its expected cash generation over time, with free cash flow of about $27.2 billion in the latest twelve-month numbers.

The projected cash flows feed into a 2-Stage Free Cash Flow to Equity framework, giving an intrinsic value of around $349 per share, roughly a 38.7% discount from the current market price.