| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 116.90 | -21 |
| Intrinsic value (DCF) | 56.01 | -62 |
| Graham-Dodd Method | 28.40 | -81 |
| Graham Formula | 54.40 | -63 |
Chevron Corporation (CHV.DE) is a global leader in integrated energy and chemicals operations, listed on the Deutsche Börse (XETRA). Headquartered in San Ramon, California, Chevron operates across two primary segments: Upstream and Downstream. The Upstream segment focuses on exploration, production, and transportation of crude oil and natural gas, including LNG operations, while the Downstream segment refines crude oil into petroleum products, markets renewable fuels, and manufactures petrochemicals. With a history dating back to 1879, Chevron has established itself as a key player in the energy sector, leveraging its extensive infrastructure, technological expertise, and global supply chain. The company's diversified operations mitigate risks associated with volatile oil prices, and its commitment to renewable energy and sustainability initiatives positions it for long-term growth in a transitioning energy landscape. Chevron's strong financials, including a market cap exceeding €208 billion, underscore its stability and appeal to investors seeking exposure to the energy sector.
Chevron presents a compelling investment case due to its strong balance sheet, diversified operations, and consistent dividend payouts (€6.28 per share). With a beta of 0.806, the stock offers relative stability compared to the broader market, making it attractive for risk-averse investors. The company's robust operating cash flow (€31.49 billion) supports its capital expenditures (€16.45 billion) and debt management (€24.54 billion). However, Chevron faces risks from fluctuating oil prices, regulatory pressures, and the global shift toward renewable energy. Investors should weigh its strong fundamentals against sector-wide challenges, including decarbonization trends and geopolitical uncertainties affecting energy markets.
Chevron's competitive advantage lies in its vertically integrated operations, spanning exploration, production, refining, and marketing. This integration allows cost efficiencies and resilience against commodity price volatility. The company's extensive global footprint, including LNG capabilities, provides diversification and access to high-growth markets. Chevron's technological investments in carbon capture and renewable fuels position it strategically amid energy transition trends. However, competition is intense among integrated oil majors, with rivals like ExxonMobil and Shell also investing heavily in low-carbon initiatives. Chevron's scale and operational expertise give it an edge, but its slower pivot to renewables compared to European peers may pose long-term risks. The company's strong brand, distribution network, and R&D capabilities in refining and petrochemicals further solidify its market position.