Can ExxonMobil Holdings (XOM) Stay Cheap With Cash Flow Growing?
Yahoo Finance ·
Can ExxonMobil Holdings (XOM) Stay Cheap With Cash Flow Growing? Bailey Pemberton Tue, September 29, 2026 at 12:27 AM EDT 3 min read XOM CL=F ExxonMobil Holdings has ridden a powerful multi year run, and with the stock near recent highs the key question is whether the cash the business can generate is enough to justify today's price tag. Over the past 5 years the share price has delivered a total return of 213.8%. This puts a lot of expectations about future cash flows into the current valuation debate. Recent deals ranging from crude supply agreements in Vietnam to new carbon capture projects in Texas can influence how steady and long lived ExxonMobil's future cash flows might be, and how much reinvestment they may require. If you'd rather focus on earnings, this one's for you. See what ExxonMobil Holdings's 20.4x P/E says about the price . The issue now is whether the current US$162.52 share price is adequately supported by the cash flows implied by ExxonMobil's Discounted Cash Flow (DCF) intrinsic value estimate. If you are comparing ExxonMobil Holdings with similar opportunities linked to oil, gas and energy infrastructure, it can help to review it alongside 39 power grid technology and infrastructure stocks . The Discounted Cash Flow (DCF) approach here projects the cash ExxonMobil Holdings can return to shareholders and then discounts those streams back to today. On this model, the business is generating last twelve month free cash flow of about $32.8b, with the forecast curve assuming that cash generation grows from current levels rather than shrinking away. That steady to growing free cash flow profile means the DCF output lands meaningfully above the current $162.52 share price, even after applying a discount to future years. The recent approval of ExxonMobil's Rose carbon capture project in Texas is one reason analysts include ongoing cash flows that extend well beyond the near term, despite swings in energy prices and sector sentiment. Find out what ExxonMobil Holdings could be worth using our Discounted Cash Flow (DCF) estimate . Narratives for ExxonMobil Holdings pick up where the DCF debate leaves off by explaining which combinations of growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than today's price. These narratives appear on Simply Wall St's Community page as a set of contrasting views. Each one turns fair value into a hypothesis about ExxonMobil Holdings' business that you can track over time as new data becomes available. One of the top community narratives on ExxonMobil Holdings: roughly fairly valued "Disciplined through cycle capital allocation continues, as shown by investment in low cost projects, industry leading earnings of US$14.5b and US$23.6b of cash flow from operations in Q2 2026 alongside US$7b of cash capex..." Discover why this Narrative puts ExxonMobil Holdings at roughly fairly valued . Cash flows and valuation models tell only part of the story, because the people steering ExxonMobil Holdings and the way they are rewarded can shape every capital allocation decision you care about. See who runs ExxonMobil Holdings and how they are paid . 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
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