Petroleo Brasileiro SA Petrobras ADR (PBR) is undervalued and ExxonMobil Holdings Corp (XOM) is overvalued.
Against our estimates of intrinsic value, PBR trades at the wider discount: a margin of safety of +62%, against -52% for XOM.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $67.32; the price of $25.56 is 62% below that value, and 81% of that value comes from beyond year five.
Leak Score 79/100 on 12 of 12 signals
Discounting its cash flows at 8.0% (average of 3 methods) values the shares at $117.48; the price of $178.28 is 52% above that value, and 79% of that value comes from beyond year five.
Leak Score 55/100 on 11 of 12 signals
| Metric | PBR | XOM |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $25.56 | $178.28 |
| Intrinsic value | $67.32 | $117.48 |
| Margin of safety | +62% | -52% |
| Leak Score | 79/100 (12/12) | 55/100 (11/12) |
| Market cap | $95.1B | $733.1B |
| Revenue growth, 5 years | 11.0% | 12.7% |
| Operating margin | 34.8% | 11.3% |
| Net margin | 24.5% | 9.0% |
| Return on equity | 30.7% | 12.6% |
| Debt to equity | 0.76 | 0.16 |
| P/E | 6.5x | 22.9x |
| Forward P/E | 6.4x | 14.6x |
| P/B | 1.8x | 2.8x |
| Dividend yield | 6.9% | 2.3% |