Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Phillips 66PSX +2.75%64 Graham Number is $106.97 as of Mar. 2026, which is 9122% above its 10-year median of 1.16. GuruFocus rates PSX with a GF Score™ of 64/100 and a GF Value™ of $136.39 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 609 Oil & Gas companies, Phillips 66 ranks worse than 77.01% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-19), the stock price of Phillips 66 is $206.86. Phillips 66's graham number for the quarter that ended in Mar. 2026 was $106.97. Therefore, Phillips 66's Price to Graham Number ratio for today is 1.93.
The historical rank and industry rank for Phillips 66's Graham Number or its related term are showing as below:
PSX'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.49 Med: 1.16 Max: 2.06
Current: 1.93
During the past 13 years, the highest Price to Graham Number ratio of Phillips 66 was 2.06. The lowest was 0.49. And the median was 1.16.
PSX's Price-to-Graham-Number is ranked worse than 77.01% of 609
companies
in the Oil & Gas industry
Industry Median: 1.08
vs PSX: 1.93
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Phillips 66 (NYSE:PSX) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Phillips 66's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
206.86
/
106.97
=
1.93
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Phillips 66 Graham Number Related Terms
Phillips 66 Graham Number Historical Data
* Premium members only.
The historical data trend for Phillips 66's Graham Number can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Refining & Marketing subindustry, Phillips 66's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Phillips 66 Price-to-Graham-Number vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Phillips 66's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Phillips 66's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Phillips 66 (PSX) has a Graham Number of $106.97 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Phillips 66 and its competitors. This is 9122% above median its historical median of 1.16. Over the past decade, Phillips 66's Graham Number has ranged from 0.49 to 2.06. According to the industry distribution chart, Phillips 66 ranks #469 out of 609 companies in the Oil & Gas industry, placing it in the top 77%.
Is Phillips 66's Graham Number too high?
Phillips 66's current Graham Number of $106.97 is 9122% above median its 10-year median of 1.16. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 2.06. The Oil & Gas industry median Graham Number is 1.08. Phillips 66's value of $106.97 is 9804.6% above this industry median. Based on the distribution chart, Phillips 66 ranks #469 out of 609 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Phillips 66 has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Phillips 66's Graham Number compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Phillips 66 ranks #469 out of 609 companies for Graham Number. This places Phillips 66 in the lower half of its industry. The industry median Graham Number is 1.08. Phillips 66's value of $106.97 is 9804.6% above this benchmark. Historically, Phillips 66's own Graham Number has ranged from 0.49 to 2.06 over the past decade. While the company's 10-year median is 1.16 vs. the industry median of 1.08, Phillips 66 has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for an Oil & Gas company?
The median Graham Number among Oil & Gas companies is 1.08, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Phillips 66's current Graham Number of $106.97 is 9804.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Phillips 66 and its competitors. For the Oil & Gas industry, the median Graham Number is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Phillips 66's current Graham Number is $106.97, which is 9122% above median its own 10-year median of 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phillips 66 stock overvalued right now?
Based on GuruFocus' analysis, Phillips 66 (PSX) is currently considered Significantly Overvalued. The stock's GF Value™ is $136.39, compared to a current price of $206.86 — trading 51.7% above its estimated fair value. The current Graham Number is $106.97, which is 9122% above median its 10-year median of 1.16 and 9804.6% above the Oil & Gas industry median of 1.08. Phillips 66's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Phillips 66 (PSX), the current Graham Number is $106.97 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Phillips 66 (PSX) Overvalued in 2026?
Based on GuruFocus' analysis, Phillips 66 stock appears to be overvalued.
The current stock price of $206.86 is trading 51.7% above its estimated GF Value™ of $136.39.
GuruFocus considers Phillips 66 to be Significantly Overvalued.
Key valuation signals for PSX:
Graham Number: $106.97 (9122% above median its 10-year median of 1.16)
GF Value™: $136.39 vs. price of $206.86 (51.7% above fair value)
Industry Position: 9804.6% above the Oil & Gas median (#469 of 609)
No single metric tells the full story. See the PSX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phillips 66 is an independent refiner that owns or holds interest in 10 refineries with a total crude throughput capacity of 2.0 million barrels per day, or mmb/d, at the end of 2025. The midstream segment comprises extensive transportation and NGL processing assets. It includes 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems, and a comprehensive set of refined petroleum product, NGL and crude oil terminals, gathering and processing plants and fractionation facilities and various other storage and loading facilities. Its CPChem chemical joint venture operates facilities primarily in the United States and the Middle East and produces olefins and polyolefins.
64GF Score
Get the complete analysis for PSX
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PSX has been successfully added to your 
