Just look at the graph for the past year UCL versus XOM and you will see there is a big premium built into the price. Remember the rumour and runup in price started well before the CVX offer. As far as the P/E it's currently 11.95 versus CVX at 9.11 so which is under priced? COP is about the same as CVX. XOM is at 14.04 but it has been much higher than the smaller companies for as long as I can remember.