How does it score on the assessment measures?
InvestorsObserver gives Phillips 66 (PSX) a solid valuation score of 95 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. PSX currently holds a better value than 95% of the stock based on these metrics. Long-term buy-and-hold investors should find the valuation ranking system most relevant when making investment decisions.
PSX has a year-over-year price-to-earnings (PE) ratio of 28.4. The historical average of around 15 indicates low value for PSX shares as investors pay higher stock prices relative to company earnings. PSX’s high PE ratio shows that the company has been trading above fair market value recently. Its earnings per share (EPS) over the last 12 months of 2.97 does not justify the current share price. However, rolling PE ratios do not take into account the company’s projected growth rate, resulting in many new companies having high PE ratios due to high growth potential that attracts investors despite insufficient earnings. . PSX’s 12-month PE-to-Growth (PEG) ratio of 0.94 is considered about average as the market values PSX in line with its expected earnings growth. PSX’s PEG comes from its forward price-to-earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and stock price. Due to their incorporation of more fundamentals of a company’s overall health and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. today.
PSX’ has an adequate valuation at its current price due to a fairly valued PEG ratio despite strong growth. PSX’s PE and PEG are around the market average, leading to an average valuation score. Click here for the full Phillips 66 (PSX) stock report.
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