Is Phillips 66 overvalued or undervalued?

As of 17 October 2025, the valuation grade for Phillips 66 has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued, supported by a P/E ratio of 43, a Price to Book Value of 2.59, and an EV to EBITDA of 28.87, all of which are higher than those of its peers. For comparison, Marathon Petroleum Corp. has a P/E of 32.03 and an EV to EBITDA of 19.19, while Valero Energy Corp. shows a P/E of 45.76 and an EV to EBITDA of 19.20, highlighting Phillips 66's relatively high valuation metrics.
In terms of recent performance, Phillips 66 has outperformed the S&P 500 over the past week with a return of 1.98% compared to the S&P 500's 1.70%, but it has lagged behind over the longer term, particularly in the 1-year and 3-year periods. This mixed performance further reinforces the notion that the stock may be overvalued given its high valuation ratios compared to its peers.