4. To see how XOM’s P/E ratio has varied over time, return to the COMPANY OVERVIEW page. Next click FINANCIALS—GROWTH RATIOS and then select WORLDSCOPE—INCOME STATEMENT RATIOS. Is XOM’s current P/E ratio well above or well below its historical average? If so, do you have any explanation for why the current P/E deviates from its historical trend?

On the basis of this information, does XOM’s current P/E suggest that the stock is undervalued or overvalued? Explain.