Phillips Valuation

PSX Stock  USD 163.34  4.38  2.76%   
At this time, the company appears to be undervalued. Phillips 66 holds a recent Real Value of $181.95 per share. The prevailing price of the company is $163.34. Our model determines the value of Phillips 66 from analyzing the company fundamentals such as Shares Outstanding of 427.82 M, operating margin of 0.04 %, and Return On Equity of 0.22 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Undervalued
Today
163.34
Please note that Phillips' price fluctuation is very steady at this time. Calculation of the real value of Phillips 66 is based on 3 months time horizon. Increasing Phillips' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Phillips 66 is useful when determining the fair value of the Phillips stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Phillips. Since Phillips is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Phillips Stock. However, Phillips' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  163.34 Real  181.95 Hype  163.34 Naive  158.62
The real value of Phillips Stock, also known as its intrinsic value, is the underlying worth of Phillips 66 Company, which is reflected in its stock price. It is based on Phillips' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Phillips' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Phillips' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
147.01
Downside
181.95
Real Value
183.31
Upside
Estimating the potential upside or downside of Phillips 66 helps investors to forecast how Phillips stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Phillips more accurately as focusing exclusively on Phillips' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
139.57152.14164.71
Details
Hype
Prediction
LowEstimatedHigh
161.98163.34164.70
Details
Potential
Annual Dividend
LowForecastedHigh
2.662.722.78
Details

Phillips Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Phillips's current stock value. Our valuation model uses many indicators to compare Phillips value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Phillips competition to find correlations between indicators driving Phillips's intrinsic value. More Info.
Phillips 66 is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in annual yield category among related companies fabricating about  0.01  of Annual Yield per Five Year Return. The ratio of Five Year Return to Annual Yield for Phillips 66 is roughly  155.30 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Phillips by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Phillips' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Phillips' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Phillips' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Phillips and how it compares across the competition.

About Phillips Valuation

The stock valuation mechanism determines the current worth of Phillips 66 on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Phillips 66. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Phillips 66 based exclusively on its fundamental and basic technical indicators. By analyzing Phillips's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Phillips's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Phillips. We calculate exposure to Phillips's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Phillips's related companies.
Phillips 66 operates as an energy manufacturing and logistics company. The company was founded in 1875 and is headquartered in Houston, Texas. Phillips operates under Oil Gas Refining Marketing classification in the United States and is traded on New York Stock Exchange. It employs 14000 people.

8 Steps to conduct Phillips' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Phillips' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Phillips' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Phillips' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Phillips' revenue streams: Identify Phillips' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Phillips' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Phillips' growth potential: Evaluate Phillips' management, business model, and growth potential.
  • Determine Phillips' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Phillips' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Phillips' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Phillips' value is low or high relative to the company's performance and growth projections. Determining the market value of Phillips can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Phillips represents a small ownership stake in the entity. As a stockholder of Phillips, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Phillips Dividends Analysis For Valuation

There are various types of dividends Phillips can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Phillips shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Phillips 66 directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Phillips pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Phillips by the value of the dividends paid out.

Phillips Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Phillips does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding453.2 M
Quarterly Earnings Growth Y O Y-0.28
Forward Price Earnings11.7371
When determining whether Phillips 66 offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Phillips' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Phillips 66 Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Phillips 66 Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Phillips 66. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.
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Complementary Tools for Phillips Stock analysis

When running Phillips' price analysis, check to measure Phillips' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Phillips is operating at the current time. Most of Phillips' value examination focuses on studying past and present price action to predict the probability of Phillips' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Phillips' price. Additionally, you may evaluate how the addition of Phillips to your portfolios can decrease your overall portfolio volatility.
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Is Phillips' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Phillips. If investors know Phillips will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Phillips listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Phillips 66 is measured differently than its book value, which is the value of Phillips that is recorded on the company's balance sheet. Investors also form their own opinion of Phillips' value that differs from its market value or its book value, called intrinsic value, which is Phillips' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Phillips' market value can be influenced by many factors that don't directly affect Phillips' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Phillips' value and its price as these two are different measures arrived at by different means. Investors typically determine if Phillips is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Phillips' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.