MPC Relative Valuation
MPC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MPC is overvalued; if below, it's undervalued.
Historical Valuation
Marathon Petroleum Corp (MPC) is now in the Fair zone, suggesting that its current forward PE ratio of 10.70 is considered Fairly compared with the five-year average of 15.21. The fair price of Marathon Petroleum Corp (MPC) is between 99.61 to 385.54 according to relative valuation methord.
Relative Value
Fair Zone
99.61-385.54
Current Price：177.07
Fair
10.70
PE
1Y
3Y
5Y
6.69
EV/EBITDA
Marathon Petroleum Corp. (MPC) has a current EV/EBITDA of 6.69. The 5-year average EV/EBITDA is 6.71. The thresholds are as follows: Strongly Undervalued below 2.61, Undervalued between 2.61 and 4.66, Fairly Valued between 8.77 and 4.66, Overvalued between 8.77 and 10.82, and Strongly Overvalued above 10.82. The current Forward EV/EBITDA of 6.69 falls within the Historic Trend Line -Fairly Valued range.
9.53
EV/EBIT
Marathon Petroleum Corp. (MPC) has a current EV/EBIT of 9.53. The 5-year average EV/EBIT is 10.69. The thresholds are as follows: Strongly Undervalued below 1.07, Undervalued between 1.07 and 5.88, Fairly Valued between 15.49 and 5.88, Overvalued between 15.49 and 20.30, and Strongly Overvalued above 20.30. The current Forward EV/EBIT of 9.53 falls within the Historic Trend Line -Fairly Valued range.
0.40
PS
Marathon Petroleum Corp. (MPC) has a current PS of 0.40. The 5-year average PS is 0.39. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 0.33, Fairly Valued between 0.45 and 0.33, Overvalued between 0.45 and 0.51, and Strongly Overvalued above 0.51. The current Forward PS of 0.40 falls within the Historic Trend Line -Fairly Valued range.
4.73
P/OCF
Marathon Petroleum Corp. (MPC) has a current P/OCF of 4.73. The 5-year average P/OCF is 5.60. The thresholds are as follows: Strongly Undervalued below 2.28, Undervalued between 2.28 and 3.94, Fairly Valued between 7.26 and 3.94, Overvalued between 7.26 and 8.92, and Strongly Overvalued above 8.92. The current Forward P/OCF of 4.73 falls within the Historic Trend Line -Fairly Valued range.
6.64
P/FCF
Marathon Petroleum Corp. (MPC) has a current P/FCF of 6.64. The 5-year average P/FCF is 7.98. The thresholds are as follows: Strongly Undervalued below 2.84, Undervalued between 2.84 and 5.41, Fairly Valued between 10.54 and 5.41, Overvalued between 10.54 and 13.11, and Strongly Overvalued above 13.11. The current Forward P/FCF of 6.64 falls within the Historic Trend Line -Fairly Valued range.
Marathon Petroleum Corp (MPC) has a current Price-to-Book (P/B) ratio of 2.91. Compared to its 3-year average P/B ratio of 2.58 , the current P/B ratio is approximately 12.65% higher. Relative to its 5-year average P/B ratio of 2.23, the current P/B ratio is about 30.61% higher. Marathon Petroleum Corp (MPC) has a Forward Free Cash Flow (FCF) yield of approximately 8.61%. Compared to its 3-year average FCF yield of 16.77%, the current FCF yield is approximately -48.63% lower. Relative to its 5-year average FCF yield of 13.85% , the current FCF yield is about -37.79% lower.
2.91
P/B
Median3y
2.58
Median5y
2.23
8.61
FCF Yield
Median3y
16.77
Median5y
13.85
Competitors Valuation Multiple
The average P/S ratio for MPC's competitors is 0.45, providing a benchmark for relative valuation. Marathon Petroleum Corp Corp (MPC) exhibits a P/S ratio of 0.40, which is -10.8% above the industry average. Given its robust revenue growth of -0.80%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MPC increased by 18.39% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.89 to 5.57.
The secondary factor is the Revenue Growth, contributed -0.80%to the performance.
Overall, the performance of MPC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Marathon Petroleum Corp (MPC) currently overvalued or undervalued?
Marathon Petroleum Corp (MPC) is now in the Fair zone, suggesting that its current forward PE ratio of 10.70 is considered Fairly compared with the five-year average of 15.21. The fair price of Marathon Petroleum Corp (MPC) is between 99.61 to 385.54 according to relative valuation methord.
What is Marathon Petroleum Corp (MPC) fair value?
MPC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Marathon Petroleum Corp (MPC) is between 99.61 to 385.54 according to relative valuation methord.
How does MPC's valuation metrics compare to the industry average?
The average P/S ratio for MPC's competitors is 0.45, providing a benchmark for relative valuation. Marathon Petroleum Corp Corp (MPC) exhibits a P/S ratio of 0.40, which is -10.80% above the industry average. Given its robust revenue growth of -0.80%, this premium appears unsustainable.
What is the current P/B ratio for Marathon Petroleum Corp (MPC) as of Jan 09 2026?
As of Jan 09 2026, Marathon Petroleum Corp (MPC) has a P/B ratio of 2.91. This indicates that the market values MPC at 2.91 times its book value.
What is the current FCF Yield for Marathon Petroleum Corp (MPC) as of Jan 09 2026?
As of Jan 09 2026, Marathon Petroleum Corp (MPC) has a FCF Yield of 8.61%. This means that for every dollar of Marathon Petroleum Corp’s market capitalization, the company generates 8.61 cents in free cash flow.
What is the current Forward P/E ratio for Marathon Petroleum Corp (MPC) as of Jan 09 2026?
As of Jan 09 2026, Marathon Petroleum Corp (MPC) has a Forward P/E ratio of 10.70. This means the market is willing to pay $10.70 for every dollar of Marathon Petroleum Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Marathon Petroleum Corp (MPC) as of Jan 09 2026?
As of Jan 09 2026, Marathon Petroleum Corp (MPC) has a Forward P/S ratio of 0.40. This means the market is valuing MPC at $0.40 for every dollar of expected revenue over the next 12 months.