On August 05, 2026, Marathon Petroleum Corp MPC shares experienced a decline of 4.8%, bringing the current price to $297.75. This performance is set against a 52-week range of $158.00 to $326.92.
- GF Value™ verdict: Current price is $297.75, compared to a GF Value of $213.41, indicating the stock is 39.5% overvalued.
- GF Score™: 56/100, which is categorized as average.
- Notable signal: Insiders sold $2.0M worth of stock in the last 3 months without any buying activity.
Is MPC Overvalued or Undervalued?
Marathon Petroleum Corp MPC is currently trading at $297.75, which exceeds its GF Value™ estimate of $213.41. This indicates that the stock is significantly overvalued by approximately 39.5%. The GF Value™ is a proprietary intrinsic-value estimate that considers historical trading multiples, past business growth, and future performance estimates. The current valuation suggests that there is little margin of safety for prospective investors, as the stock price is not supported by the fundamentals as indicated by the GF Value™ label of "Significantly Overvalued."
Investors should be cautious of the risks tied to this overvaluation, particularly in a market that can be prone to corrections. The disconnect between the current price and the fundamental value raises concerns about future price performance, especially as the stock's valuation does not appear justifiable based on historical metrics.
How Does MPC's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 10.2x | 7.1x |
| Forward P/E | 9.3x | N/A |
The current P/E ratio of 10.2x is 43% above its 5-year median P/E of 7.1x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that MPC is overvalued at its current price level.
What Does MPC's GF Score™ Tell Us?
The GF Score™ is a comprehensive metric that assesses a company's financial strength, profitability, growth potential, valuation, and momentum. Marathon Petroleum’s GF Score™ of 56/100 reflects an average standing, with notable strengths and weaknesses across various sub-ranks.
| Metric | Rating |
|---|---|
| GF Score™ | 56 |
| Financial Strength | 5/10 |
| Profitability | 7/10 |
| Growth | 3/10 |
| Valuation | 3/10 |
| Momentum | 1/10 |
The strongest area for MPC is its profitability rank of 7/10, suggesting solid earnings relative to its peers. However, the weakest area is the momentum rank of 1/10, indicating a lack of upward price movement, which aligns with the recent decline in stock price. The average GF Score™ overall signifies that while there are some strengths, particularly in profitability, the stock's valuation and growth prospects raise concerns.
What Are Gurus and Insiders Doing with MPC?
Currently, 11 gurus hold shares of Marathon Petroleum Corp MPC, with 4 adding to their positions and 11 trimming their holdings in recent quarters. This mixed sentiment among gurus warrants attention, as it reflects varied confidence levels in the stock's future performance.
In addition, insider activity has shown a bearish trend, with insiders selling $2.0 million worth of stock in the last 3 months and no buying activity reported. This lack of insider confidence could further signal potential risks associated with the current valuation, suggesting that insiders may not see favorable prospects for the stock in the near term.
What This Means for Investors
In conclusion, Marathon Petroleum Corp MPC appears to be overvalued based on the GF Value™ estimate, with a significant premium over its intrinsic value. The combination of a high P/E ratio compared to historical averages, a mediocre GF Score™, and negative insider activity all point to caution for potential investors. For further insights and data, visit the Marathon Petroleum Corp (MPC) stock page, and explore additional information on the GF Value™ page or the GuruFocus Stock Screener.
Frequently Asked Questions
What is MPC's GF Score™?
MPC has a GF Score™ of 56/100, indicating an average overall rating with some strengths in profitability but weaknesses in momentum and valuation.
Is MPC overvalued or undervalued?
MPC is currently overvalued, with a GF Value™ estimate of $213.41 compared to the current price of $297.75, representing a 39.5% overvaluation.
What is MPC's P/E ratio?
The P/E ratio for MPC is 10.2x, which is significantly above its 5-year median of 7.1x, indicating the stock is trading at a higher valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
