<div id="readability-page-1"><div><p>Phillips 66 (PSX) just closed the sale of a 65% stake in its Germany and Austria retail marketing business, a balance sheet friendly move that frees up capital for higher return, midstream driven growth.</p> <p>See our latest analysis for Phillips 66.</p> <p>That sale lands at a time when Phillips 66’s share price has been grinding higher, with a 90 day share price return of 9.67 percent feeding into a strong 25.36 percent year to date move and a 5 year total shareholder return of 159.6 percent. This suggests momentum is still on the front foot rather than fading.</p> <p>If this kind of balance sheet reshaping has you thinking about what else might be setting up for a multi year run, it is worth exploring fast growing stocks with high insider ownership for other under the radar ideas.</p> <p>Yet with the stock near highs, trading just below analyst targets but at a steep intrinsic discount, the real question is simple: Is Phillips 66 still attractive at this level, or is future growth already priced in?</p> <h2>Most Popular Narrative Narrative: 46.6% Undervalued</h2> <p>With the narrative fair value sitting far above Phillips 66’s recent close at $143.43, the setup points to a sizable long term valuation gap.</p> <blockquote> <p><em>Phillips 66 (PSX) is often considered undervalued for several reasons. Investment analysis typically looks at various factors to determine if a company's stock might be undervalued and whether it has the potential to achieve higher profit margins.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see why, according to mschoen25, modest revenue growth, fatter margins, and a richer future earnings multiple still justify such a lofty fair value? The narrative leans on a slower top line, upgraded profitability, and a valuation profile more often seen in fast growing sectors, not old economy refiners. Curious how those moving parts stack up to reach that target price? Read on to unpack the full storyline behind the numbers.</p> <p><strong>Result: Fair Value of $268.71 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, weaker refining margins or a prolonged energy downturn could derail profit expansion and keep Phillips 66 trading closer to cyclical rather than growth valuations.</p> <p>Find out about the key risks to this Phillips 66 narrative.</p> <h2>Another View: Market Ratios Flash a Warning</h2> <p>While the narrative fair value points to deep upside, the current earnings multiple tells a very different story. At 38.6 times earnings versus a fair ratio of 25.1 times, and well above peers at 25.8 times and the industry at 13.6 times, the stock screens as stretched and leaves less room for error.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/15e05696-3826-44c3-b624-607cef9cf46e/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/15e05696-3826-44c3-b624-607cef9cf46e/chart/pe-multiple-vs-industry"/><figcaption>NYSE:PSX PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Phillips 66 Narrative</h2> <p>If you see the story differently or want to stress test the numbers yourself, you can build a personalized thesis in minutes: Do it your way.</p> <p>A great starting point for your Phillips 66 research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.</p> <h2>Ready for your next investing move?</h2> <p>Do not stop with one opportunity. 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We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>Phillips 66 sold a 65% stake in its Germany and Austria retail marketing business, freeing capital for midstream growth. Despite a strong share price performance, the stock is considered undervalued with a fair value of $268.71, suggesting a long-term valuation gap. However, high earnings multiples compared to peers indicate potential risks. Investors are advised to explore other opportunities and consider key risks before investing.</p>

Phillips 66 (PSX) Valuation Check After European Retail Sale and Growing Midstream Optimism