Marathon Petroleum’s valuation
In this part of the series, we’ll look at Marathon Petroleum’s (MPC) valuations. After Elliott Management’s recommendations, which we looked at in the previous parts of this series, MPC’s forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple stood at 23.1x. Its PE (price-to-earnings) multiple was 7.1x. The peer averages were 20.5x and 8.0x, respectively.
MPC trades below Phillips 66 (PSX) on both valuation matrixes, likely because PSX has a more diversified downstream business model.
For exposure to refining stocks, you can consider the iShares North American Natural Resources (IGE). IGE has a ~7.0% exposure to refining and marketing sector stocks.