Phillips 66 (PSX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-30.2%

$192.82

vs $276.42 price

Levered DCF

$144.96

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

4.68

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.9×	22.74×	8.56×	4.46×	24.4×	-7.72×	16.38×	7.25×
P/B	1.8×	1.75×	1.96×	1.66×	1.66×	1.62×	2.02×	1.64×
P/S	0.4×	0.33×	0.41×	0.29×	0.28×	0.48×	0.47×	0.36×
EV / EBITDA	7.64×	11.06×	6.14×	3.56×	11.01×	-14.56×	10.12×	5.22×
Gross margin	4.9%	3.4%	7.7%	7.5%	3.0%	0.3%	4.9%	6.4%
Operating margin	2.7%	1.6%	5.6%	5.9%	1.1%	-2.9%	3.0%	4.5%
Net margin	3.3%	1.5%	4.8%	6.5%	1.2%	-6.3%	2.9%	5.0%
Current ratio	1.3×	1.19×	1.26×	1.38×	1.15×	1.39×	1.24×	1.48×
Debt / equity	0.79×	0.73×	0.63×	0.58×	0.77×	0.85×	0.48×	0.45×
Interest coverage	3.39×	2.56×	9.22×	16.27×	2.11×	-3.66×	7.04×	10×
Dividend yield	3.7%	3.9%	3.1%	3.7%	5.0%	5.1%	3.1%	3.5%
Payout ratio	43.7%	88.9%	26.9%	16.3%	120.5%	-39.5%	51.0%	25.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.1%	7.7%	22.9%	37.4%	6.9%	-21.0%	12.3%	22.7%
Return on invested capital	4.7%	3.2%	10.3%	12.8%	2.5%	-3.0%	5.5%	8.8%
Return on assets	6.0%	2.9%	9.3%	14.4%	2.4%	-7.3%	5.2%	10.3%
Free cash flow yield	5.2%	4.9%	7.7%	17.6%	13.0%	-2.6%	1.9%	12.2%
Earnings yield	8.4%	4.4%	11.7%	22.5%	4.1%	-13.0%	6.1%	13.8%
Enterprise value	$74.2B	$66.2B	$76B	$60.1B	$43.5B	$44.4B	$60.7B	$48.7B
Net debt / EBITDA	2.24×	3.06×	1.3×	0.65×	2.93×	-4.48×	1.74×	0.87×
Cash conversion cycle (days)	16	11	10	5	7	28	12	10