Published on 10 Apr 2024 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of Phillips 66 (NYSE:PSX)
Key Insights
Phillips 66's estimated fair value is US$196 based on 2 Stage Free Cash Flow to EquityWith US$165 share price, Phillips 66 appears to be trading close to its estimated fair value The US$162 analyst price target for PSX is 17% less than our estimate of fair value
In this article we are going to estimate the intrinsic value of Phillips 66 (NYSE:PSX) by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!