Question

When the price of oil fell in 2014 and 2015, ExxonMobil’s stock price dropped in expectation that earnings would also eventually fall. The P/E ratio was below 10 for some time. Go to finance.yahoo.com and type “XOM” into the “Quote Lookup” box. Scroll down and click on “ExxonMobil Corporation.”

Click on “Profile” and write a one-paragraph description of the company’s activities. Return to the summary page and write down the company’s P/E ratio. Is it still relatively low (under 15)?

Compare ExxonMobil to others in the industry (Chevron, BP, etc.) based on the P/E ratio and the PEG ratio (the P/E ratio divided by annual growth).

Go back to the summary page. Is the stock up or down from the prior day? (See the number in parentheses next to the share price.)

What is its 52-week range?

Click on the “Analysts” heading. What are the Average Earnings Estimate, Low Earnings Estimate, and High Earnings Estimate? How many analysts follow earnings?

Answer 1

ExxonMobil, one of the world’s largest publicly traded energy providers and chemical manufacturers. Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments. The company also manufactures petroleum products; manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as various specialty products; produces transportation fuels, such as marine gasoil and diesel; and transports and sells crude oil, natural gas, and petroleum products. Worldwide, ExxonMobil markets fuels and lubricants under four brands: Esso, Exxon, Mobil and ExxonMobil Chemical. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas

PPE ratio (current) :16.03, it’s above 15

	CVX	COP	SU	MPC	XOM
P/E	15.41	13.01	22.2	12.22	16.03
PEG (5yr expected)	0.43	0.4	1.92	0.45	1.2

XOM has the highest P/E ratio which may indicate investor are anticipating higher future growth than its competitor, but the PEG ratio is above average indicating overvaluation of XOM.

Current price:78.23; Last close: 77.71; Up by: 0.52

52-week range: 64.65 - 87.36

Analyst Estimate:

Earning estimate	Current qtr	Next qtr	Current year	Next year
Avg	0.93	0.98	4.3	5.42
Low	0.67	0.65	3.15	3.8
High	1.44	1.54	5.81	9.92

15 analyst follow earnings.