Par Pacific Holdings (PARR) Could Be 25% Undervalued As SAF Growth Story Builds

Par Pacific Holdings Inc

Par Pacific Holdings Inc

PARR

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Par Pacific Holdings Stock Performance Snapshot

Par Pacific Holdings (PARR) has drawn investor attention after recent trading, with the stock last closing at US$56.08. Returns have been mixed, with gains over the past week but a decline over the past 3 months.

Looking beyond the latest move, Par Pacific Holdings shows a strong year-to-date share price return of 56.56%, while its 1-year total shareholder return of 99.15% points to momentum that has been building rather than fading.

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With Par Pacific Holdings delivering strong year to date and 1 year returns, plus trading below the average analyst price target and a modelled intrinsic value, the key question is whether this is still a buying opportunity or if markets are already pricing in future growth.

Most Popular Narrative: 25% Undervalued

Par Pacific Holdings is trading at $56.08, compared with a widely followed fair value narrative of $75.00, which frames the stock as meaningfully undervalued on modeled assumptions.

The strategic partnership with Mitsubishi and ENEOS, along with the upcoming SAF (Sustainable Aviation Fuel) project launch, positions Par Pacific for growth in renewable fuels; this enhances market access, leverages global feedstock procurement expertise, and is expected to positively contribute to earnings and net margin expansion starting in 2026.

Want to see what actually underpins that fair value for Par Pacific Holdings? Revenue trajectories, margin rebuild and a future earnings multiple all sit at the core. The mix may surprise you.

Result: Fair Value of $75.00 (UNDERVALUED)

However, the Par Pacific Holdings story also carries clear risk, with older refinery assets that can drive higher maintenance costs, as well as concentrated exposure to Western U.S. regulation and demand.

Next Steps

Optimistic about Par Pacific Holdings but aware of the concerns highlighted so far? You can quickly review both sides and form your own view with the 4 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.