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Phillips 66 (PSX) Stock: How Does it Score on Valuation Metrics?

Monday, December 05, 2022 02:07 PM | InvestorsObserver Analysts

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Phillips 66 (PSX) Stock: How Does it Score on Valuation Metrics?

Phillips 66 (PSX) receives a weak valuation ranking of 24 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 24% 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 - 24
PSX gets a 24 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 4.9 puts it below the historical average of roughly 15. PSX is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. PSX's trailing-12-month earnings per share (EPS) of 21.87 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's 12-month-forward PE to Growth (PEG) ratio of 0.31 is considered a good value as the market is undervaluing PSX in relation to the company's projected earnings growth. PSX's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.


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

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