Phillips 66 (PSX) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Phillips 66 stock $86.38, price $247, that is 65.0% below the price, quality 62 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $53.60 – $297.29 · fair‑value band $51.91 – $123.46 · the $247.04 price screens above the $86.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Phillips 66 operates as an integrated downstream energy provider in the United States, the United Kingdom, Germany, and internationally. It operates through five segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels.
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The Midstream segment provides crude oil and refined petroleum product transportation, terminaling, and storage services, as well as natural gas and natural gas liquids (NGL) gathering, processing, transportation, fractionation, storage and marketing services. It also exports liquefied petroleum gas.
The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining; and petrochemicals and plastics.
The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines and distillates, including aviation fuels. The M&S segment purchases for resale and markets refined products, including gasolines, distillates, and aviation fuels.
This segment also manufactures and markets specialty products, such as automotive, commercial, industrial, and specialty lubricants, as well as base oils. The Renewable Fuels segment processes renewable feedstocks into renewable products, as well as supplies sustainable aviation fuel.
This segment also procures renewable feedstocks, manages certain regulatory credits, and markets renewable diesel, renewable jet fuel, and other renewable fuels. The company markets its products under the Phillips 66, Conoco and 76, JET, Kendall, Red Line, and other private label brands.
Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.
Stock analysis
Phillips 66 (PSX) currently trades at $247.04, while our model-based Fair Value estimate is $86.38, 65% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $118.52 per share, and 0 of the 24 models we run sit above the $247.04 price.
Bear case: the Earnings-Based group reads lowest at $32.95, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $51.91 (bear) to $123.46 (bull), the price of $247.04 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 62/100 (solid quality), in the Energy sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Phillips 66 reported revenue of $132B in FY2025 versus $112B in FY2021, a compound +4.2%/yr. Reported net income was $4.4B in FY2025, compounding +35.3%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap $99.1B Large · P/E ratio 13.8 · P/S ratio 0.65 · EPS (TTM) $17.84 · Dividend yield 2.0% · Net margin 4.7% · Return on equity 23.5% · Return on assets (EBIT) 6.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (medium confidence).
What moves the price
The share trades about 17% below its 52-week high and 97% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at −34% fair-value upside, at −65%, PSX screens richer than that median.
Fair Value models
Bear$51.91Fair Value $86.38Bull$123.46
Price $247.04 · Downside -65.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($10.96 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 6 officers or directors sold shares worth $35.0M and none bought.
SaleBrian MandellExecutive Vice President5× since Nov 18, 2025: 151,200 shares, avg. $183.81$27.8MSep 16, 2026
SaleRichard G HarbisonEVP, Refining52,100 shares at $223.76$11.7MAug 12, 2026
SaleLisa Ann DavisDirector2× since Mar 13, 2026: 5,315 shares, avg. $183.88$977,322Aug 10, 2026
SaleAnn M KluppelSVP and Controller7,834 shares at $210.78$1.7MAug 10, 2026
SaleVanessa Allen SutherlandEVP, GC and Secretary4× since Jan 9, 2026: 12,874 shares, avg. $167.67$2.2MJul 21, 202610b5-1 plan
SaleKevin J MitchellExec. VP and CFO5× since Nov 7, 2025: 108,450 shares, avg. $165.58$18.0MJul 9, 2026
BuyKevin Omar MeyersDirector2× since Mar 17, 2026: 350 shares, avg. $173.17$60,608May 6, 2026
SaleDon BaldridgeExecutive Vice President7,500 shares at $160.00$1.2MFeb 17, 2026
Plus 7 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−7.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−8.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.7%
Start year 2020 (pandemic). Over 10 years: +4.5% a year
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+12.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.0%
Dividend (yield on the price)2.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.17.2% vs 3.4%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−3% → 3%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+20.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−0.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +17.7% a year for the price and −3.2% for the forecasts.
AI conclusion: Refining drives most profits via strong utilization but remains exposed to thin margins and cyclical factors with limited competitive advantages, while midstream projects seek steadier cash flows.
Main risk: Changes to US biofuel tax credits and tariffs might make further investments in renewable fuel capacity at refineries less economical and limit margin improvements from the low-carbon transition.
Bull case: The company could leverage its AI-driven efficiency gains and existing renewable projects to adapt faster to policy shifts and capture higher margins in low-carbon fuels.
Bear case: Stricter regulations or further legal setbacks might force costly refinery conversions or curtail renewable investments, eroding refining margins and threatening long-term viability of core operations.
Phillips 66 posted record refining margins and near-full utilization in the third quarter, fueled by external supply disruptions, with that segment driving the vast majority of profits. At the same time the company is pushing midstream expansions like the Western Gateway pipeline for more stable volumes and cash flows. Our models currently see the stock as overvalued. Will the refining boom extend or will cyclical headwinds return first?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas Refining & Marketing · 116 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score62 · Top 25%
Fair Value upside−65.0% · Bottom 25%
Profitability
Return on equity (12 months)23.5% · Top 25%
Return on assets6.0% · Top 25%
Net margin (12 months)4.7% · Above median
Operating margin (12 months)8.5% · Above median
Growth and dividend
Revenue growth (quarter YoY)53.1% · Top 25%
Dividend yield (12 months)2.0% · Below median
Balance sheet
Debt / equity0.64× · Above median
Valuation Multiplesvs Oil & Gas Refining & Marketing median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Phillips 66 Fair Value". https://www.fairvalue-calculator.com/stock/PSX
Frequently asked questions
Is Phillips 66 (PSX) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $86.38 versus a price of $247.04, about 65% lower (overvalued).
What is the fair value of PSX?
Our model-based fair value for Phillips 66 is $86.38 (as of Nov 6, 2026), built from audited fundamentals. The current price: $247.04.
What is the quality score of PSX?
Phillips 66 has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Phillips 66 (PSX)?
Our model-based price target is the fair value of $86.38 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario $51.91, optimistic scenario $123.46. It is a calculation from audited fundamentals, not an analyst target.
What is the Phillips 66 stock forecast for 2026?
Our models put fair value at $86.38, about 65% lower versus a price of $247.04 (overvalued). Cautious scenario $51.91, optimistic scenario $123.46. The calculation is refreshed regularly with new filings.
What is the revenue of Phillips 66 (PSX)?
Phillips 66 reported trailing-twelve-month revenue of about $152B (latest available figure, as of Nov 6, 2026).
Does Phillips 66 pay a dividend?
Phillips 66 currently shows a dividend yield of 2.00% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Phillips 66 (PSX)?
For today's price to be fair in a discounted-cash-flow model, Phillips 66 would have to grow free cash flow by +20.5 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.7 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of PSX use?
Our models discount Phillips 66 at 8.5 %: a base by market capitalisation (large), damped by beta 0.70, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Phillips 66 that is +20.5 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Phillips 66 (PSX) delivered so far?
Over the past 5 years revenue at Phillips 66 grew +15.7 % a year. The price currently implies +20.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Phillips 66 (PSX) growing?
The median revenue growth in the sector is +14.0 % a year. That is the yardstick for the growth priced into Phillips 66 (+20.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Phillips 66 (PSX)?
The free-cash-flow yield on the price is 2.74 %: that much free cash flow Phillips 66 produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Phillips 66 (PSX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Phillips 66 it is $86.38 per share (as of Nov 6, 2026), against a price of $247.04. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Phillips 66 stock overvalued or undervalued in 2026?
As of Nov 6, 2026, PSX trades above its calculated fair value: price $247.04, fair value $86.38, a gap of about −65% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PSX?
No. The price is what the market pays today ($247.04); the fair value is what the company's own numbers justify ($86.38). For Phillips 66 the two are $160.66 per share apart. That gap is exactly why we show both numbers side by side.
How much is Phillips 66 worth?
The market values Phillips 66 at about $99.1B (market capitalisation, as of Nov 6, 2026). Per share that is $247.04; our models calculate a fair value of $86.38 per share.
What do the bullish and bearish scenarios say about PSX?
Our models span a range for Phillips 66: cautious scenario $51.91, base $86.38, optimistic $123.46 per share (as of Nov 6, 2026, price $247.04). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PSX?
Phillips 66 trades at a price-to-earnings ratio of 13.8 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $86.38 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 38.4 (reported for FY2025: 22.7). Median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 11.5. Other multiples: PEG 0.9, P/B 3.4, P/S 0.7, EV/EBITDA 11.8.
What is the PEG ratio of PSX?
The PEG ratio of Phillips 66 is 0.86 (P/E divided by earnings growth, as of Nov 6, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Phillips 66 (PSX)?
Balance-sheet figures for Phillips 66 (as of Nov 6, 2026): return on equity 23.5%, debt of 0.64 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is PSX from its 52-week high?
Phillips 66 trades at $247.04, about 17% below its 52-week high of $297.29 and 97% above the low of $125.13 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $86.38 is for.
Which stocks are comparable to Phillips 66?
From the same area (Energy) we also value Reliance Industries Limited, Marathon Petroleum Corporation, Valero Energy Corporation, Formosa Petrochemical Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Phillips 66 stock attractive at the current price?
The data as of Nov 6, 2026: price $247.04, calculated fair value $86.38 (−65%), Quality Score 62/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PSX calculated?
We run Phillips 66 through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $86.38, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Phillips 66 itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Phillips 66 (PSX)?
The closing price on Nov 5, 2026 was $247.04. Our model-based fair value is $86.38, about 65% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Phillips 66 right now?
The price sits above even our optimistic bull case ($123.46). The favourable scenario is already priced in. Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($51.91 to $123.46) leaves room in how you read the outcome.
Where does the earnings growth of Phillips 66 (PSX) come from?
Earnings per share at Phillips 66 grew +5.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.7 %, EBIT margin +2.3 %, tax rate +0.9 %, residual (interest, one-offs) −4.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Phillips 66
How large is the market capitalisation of Phillips 66 (PSX)?
The market capitalisation of Phillips 66 is $99.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Phillips 66 (PSX)?
The price-to-sales ratio of Phillips 66 is 0.65 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Phillips 66 (PSX)?
Earnings per share at Phillips 66 are $17.84 (price ÷ EPS = P/E 13.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Phillips 66 (PSX)?
The dividend yield of Phillips 66 is 2.0% (payout 46.7%, on adjusted earnings, reported 27.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Phillips 66 (PSX)?
The net margin of Phillips 66 is 4.7% (last twelve months), excl. one-off gain FY2025 2.0%. How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Phillips 66 (PSX)?
The return on equity (ROE) of Phillips 66 is 23.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Phillips 66 (PSX)?
On an EBIT basis the return on assets of Phillips 66 is 6.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Phillips 66 (PSX)?
The operating margin of Phillips 66 is 8.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Phillips 66 (PSX)?
Revenue at Phillips 66 is growing +53.1% versus a year earlier (3y avg −8.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Phillips 66 (PSX)?
Earnings per share at Phillips 66 are growing +345% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Phillips 66 (PSX) carry?
The net debt of Phillips 66 is $21.8B (fiscal year 2025, ≈ 8.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026