VLO Valuation

Valero Energy Corp

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163.850

+0.18(0.110%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PS ratio of 0.44 is considered Overvalued compared with the five-year average of 10.62. The fair price of Valero Energy Corp (VLO) is between 117.47 to 150.64 according to relative valuation methord. Compared to the current price of 163.67 USD , Valero Energy Corp is Overvalued By 8.65%.

Relative Value

Fair Zone

117.47-150.64

Current Price：163.67

8.65%

Overvalued

15.53

Trailing

Forward

7.94

EV/EBITDA

Valero Energy Corp. (VLO) has a current EV/EBITDA of 7.94. The 5-year average EV/EBITDA is 6.71. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 4.10, Fairly Valued between 9.32 and 4.10, Overvalued between 9.32 and 11.93, and Strongly Overvalued above 11.93. The current Forward EV/EBITDA of 7.94 falls within the Historic Trend Line -Fairly Valued range.

12.76

EV/EBIT

Valero Energy Corp. (VLO) has a current EV/EBIT of 12.76. The 5-year average EV/EBIT is 20.98. The thresholds are as follows: Strongly Undervalued below -76.02, Undervalued between -76.02 and -27.52, Fairly Valued between 69.48 and -27.52, Overvalued between 69.48 and 117.98, and Strongly Overvalued above 117.98. The current Forward EV/EBIT of 12.76 falls within the Historic Trend Line -Fairly Valued range.

0.44

Valero Energy Corp. (VLO) has a current PS of 0.44. The 5-year average PS is 0.31. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 0.26, Fairly Valued between 0.37 and 0.26, Overvalued between 0.37 and 0.43, and Strongly Overvalued above 0.43. The current Forward PS of 0.44 falls within the Strongly Overvalued range.

8.19

P/OCF

Valero Energy Corp. (VLO) has a current P/OCF of 8.19. The 5-year average P/OCF is 6.06. The thresholds are as follows: Strongly Undervalued below 2.13, Undervalued between 2.13 and 4.10, Fairly Valued between 8.02 and 4.10, Overvalued between 8.02 and 9.99, and Strongly Overvalued above 9.99. The current Forward P/OCF of 8.19 falls within the Overvalued range.

11.88

P/FCF

Valero Energy Corp. (VLO) has a current P/FCF of 11.88. The 5-year average P/FCF is 157.63. The thresholds are as follows: Strongly Undervalued below -1073.93, Undervalued between -1073.93 and -458.15, Fairly Valued between 773.41 and -458.15, Overvalued between 773.41 and 1389.19, and Strongly Overvalued above 1389.19. The current Forward P/FCF of 11.88 falls within the Historic Trend Line -Fairly Valued range.

Valero Energy Corp (VLO) has a current Price-to-Book (P/B) ratio of 2.11. Compared to its 3-year average P/B ratio of 1.83 , the current P/B ratio is approximately 15.19% higher. Relative to its 5-year average P/B ratio of 1.80, the current P/B ratio is about 17.44% higher. Valero Energy Corp (VLO) has a Forward Free Cash Flow (FCF) yield of approximately 6.61%. Compared to its 3-year average FCF yield of 17.75%, the current FCF yield is approximately -62.74% lower. Relative to its 5-year average FCF yield of 12.94% , the current FCF yield is about -48.91% lower.

2.09

P/B

Median3y

1.83

Median5y

1.80

6.57

FCF Yield

Median3y

17.75

Median5y

12.94

Competitors Valuation Multiple

The average P/S ratio for VLO's competitors is 0.47, 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 -13.34%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Marathon Petroleum Corp

Performance Decomposition

Market capitalization of VLO increased by 23.13% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 43.76 to 67.23.

The secondary factor is the Revenue Growth, contributed -13.34%to the performance.

Overall, the performance of VLO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-13.34%

34.49B → 29.89B

Revenue Growth

-17.16%

2.68 → 2.22

Margin Expansion

53.63%

43.76 → 67.23

P/E Change

23.13%