Phillips 66 Valuation

Q: What is the Fair Price of PSXD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PSXD ($21.15) is trading below our estimate of [[fair value]] ($35.8)

Is PSXD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PSXD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PSXD ($21.15) is trading below our estimate of fair value ($35.8)

Significantly Below Fair Value: PSXD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PSXD?

Key metric: As PSXD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PSXD. This is calculated by dividing PSXD's market cap by their current earnings.
What is PSXD's PE Ratio?
PE Ratio	16.1x
Earnings	US$3.36b
Market Cap	US$54.06b

PSXD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	13.2x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does PSXD's PE Ratio compare to its peers?

The above table shows the PE ratio for PSXD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.2x
MPC Marathon Petroleum	11.4x	-10.4%	US$50.6b
VLO Valero Energy	12.4x	-1.0%	US$44.4b
ADNOCGAS ADNOC Gas	14.5x	0.2%	د.إ264.8b
TGSU2 Transportadora de Gas del Sur	30.4x	2.4%	AR$4.6t
PSXD Phillips 66	16.1x	15.3%	US$54.1b

Price-To-Earnings vs Peers: PSXD is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does PSXD's PE Ratio compare vs other companies in the Global Oil and Gas Industry?

27 Companies	Price / Earnings	Estimated Growth	Market Cap

27 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PSXD is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the Global Oil and Gas industry average (10.3x).

Price to Earnings Ratio vs Fair Ratio

What is PSXD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PSXD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PSXD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Petróleo Brasileiro - Petrobras

R$504.5b

Explores, produces, and sells oil and gas in Brazil and internationally.

PBR

R$15,950.00

0.9%

13.4%

Petróleo Brasileiro - Petrobras

R$504.5b

Explores, produces, and sells oil and gas in Brazil and internationally.

PBRD

R$14.85

6.1%

-8.9%

Prio

R$33.1b

Engages in the exploration, development, and production of oil and natural gas properties in Brazil and internationally.

PRIO3

R$3,950.00

0.6%

n/a