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Is Phillips 66 (PSX) Stock Trading Below Fair Value?

Wednesday, June 29, 2022 02:06 PM | InvestorsObserver Analysts
Is Phillips 66 (PSX) Stock Trading Below Fair Value?

Phillips 66 (PSX) receives a strong valuation ranking of 62 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. PSX has a better value than 62% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 62
PSX gets a 62 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PSX!

Metrics Analysis

PSX's trailing-12-month Price to Earnings (PE) ratio of 15.5 puts it around the historical average of roughly 15. PSX is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. PSX's trailing-12-month earnings per share (EPS) of 5.75 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
PSX has a 12 month forward PE to Growth (PEG) ratio of 0.6. Markets are overvaluing PSX in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.75's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

PSX's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. PSX's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on Phillips 66 (PSX) stock.

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