VLO Relative Valuation
VLO'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, VLO is overvalued; if below, it's undervalued.
Historical Valuation
Valero Energy Corp (VLO) is now in the Fair zone, suggesting that its current forward PE ratio of 12.33 is considered Fairly compared with the five-year average of 12.60. The fair price of Valero Energy Corp (VLO) is between 45.59 to 304.07 according to relative valuation methord.
Relative Value
Fair Zone
45.59-304.07
Current Price：177.05
Fair
12.18
PE
1Y
3Y
5Y
Trailing
Forward
7.08
EV/EBITDA
Valero Energy Corp. (VLO) has a current EV/EBITDA of 7.08. The 5-year average EV/EBITDA is 6.47. The thresholds are as follows: Strongly Undervalued below 1.91, Undervalued between 1.91 and 4.19, Fairly Valued between 8.75 and 4.19, Overvalued between 8.75 and 11.03, and Strongly Overvalued above 11.03. The current Forward EV/EBITDA of 7.08 falls within the Historic Trend Line -Fairly Valued range.
9.95
EV/EBIT
Valero Energy Corp. (VLO) has a current EV/EBIT of 9.95. The 5-year average EV/EBIT is 13.72. The thresholds are as follows: Strongly Undervalued below -42.52, Undervalued between -42.52 and -14.40, Fairly Valued between 41.85 and -14.40, Overvalued between 41.85 and 69.97, and Strongly Overvalued above 69.97. The current Forward EV/EBIT of 9.95 falls within the Historic Trend Line -Fairly Valued range.
0.48
PS
Valero Energy Corp. (VLO) has a current PS of 0.48. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 0.26, Fairly Valued between 0.38 and 0.26, Overvalued between 0.38 and 0.45, and Strongly Overvalued above 0.45. The current Forward PS of 0.48 falls within the Strongly Overvalued range.
6.35
P/OCF
Valero Energy Corp. (VLO) has a current P/OCF of 6.35. The 5-year average P/OCF is 5.92. The thresholds are as follows: Strongly Undervalued below 2.37, Undervalued between 2.37 and 4.14, Fairly Valued between 7.70 and 4.14, Overvalued between 7.70 and 9.48, and Strongly Overvalued above 9.48. The current Forward P/OCF of 6.35 falls within the Historic Trend Line -Fairly Valued range.
12.63
P/FCF
Valero Energy Corp. (VLO) has a current P/FCF of 12.63. The 5-year average P/FCF is 52.37. The thresholds are as follows: Strongly Undervalued below -677.28, Undervalued between -677.28 and -312.46, Fairly Valued between 417.20 and -312.46, Overvalued between 417.20 and 782.02, and Strongly Overvalued above 782.02. The current Forward P/FCF of 12.63 falls within the Historic Trend Line -Fairly Valued range.
Valero Energy Corp (VLO) has a current Price-to-Book (P/B) ratio of 2.27. Compared to its 3-year average P/B ratio of 1.83 , the current P/B ratio is approximately 24.02% higher. Relative to its 5-year average P/B ratio of 1.85, the current P/B ratio is about 22.83% higher. Valero Energy Corp (VLO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 16.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.07% , the current FCF yield is about -100.00% lower.
2.25
P/B
Median3y
1.83
Median5y
1.85
7.33
FCF Yield
Median3y
16.92
Median5y
13.07
Competitors Valuation Multiple
The average P/S ratio for VLO's competitors is 0.60, providing a benchmark for relative valuation. Valero Energy Corp Corp (VLO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -2.15%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of VLO increased by 43.88% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.20 to 3.31.
The secondary factor is the Revenue Growth, contributed -2.15%to the performance.
Overall, the performance of VLO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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