NYSE
VLO
Last Price
US $260.44
KEY FIGURES
MKT CAP
$77.0B
EPS
TTM
$14.11
PEG
TTM
N/M
P/E
TTM
18.82x
P/S
TTM
0.63x
YIELD
1.80%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
17.63%
Return on equity
ROIC: 9.55%
Valuation History
18.8X
Price to Earnings
EV/EBITDA: 9.1X
Cash flow
Profit margin
13.58%
(FY vs FY)
EBITDA Y/Y
49.36%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $260.44
—
Default assumptions
EBITDA Multiple
Fair Value
Market $260.44
-47.22%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Valero Energy Corporation cash flow to debt ratio of 49.78% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Valero Energy Corporation's free cash flow has decreased -12.92% from $5.78G last year to $5.03G, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Valero Energy Corporation's debt to equity ratio is 0.48, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
Valero Energy Corporation's debt has increased relative to shareholder equity from 0.47 last year to 0.48 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Valero Energy Corporation has a net debt to EBITDA ratio of 1.04x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Valero Energy Corporation's interest coverage ratio of 10.40 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Valero Energy Corporation's profit margin has increased (56.31%) in the last year from 2.13% to 3.33%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Valero Energy Corporation's short-term assets of $23.21G exceed its short-term liabilities of $14.11G
Increasing performance - ROA.
Valero Energy Corporation's return on assets of 6.77% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Valero Energy Corporation's return on equity of 17.63%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Valero Energy Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Valero Energy Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Valero Energy Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Valero Energy Corporation has a free cash flow yield of 6.53%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Valero Energy Corporation's yearly earnings has decreased -15.23% since last year from $2.77G to $2.35G, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Valero Energy Corporation's yearly revenue has decreased -5.54% since last year from $129.88G to $122.69G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 9.55% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Valero Energy Corporation's 3-year revenue CAGR of -11.40% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
Valero Energy Corporation had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Valero Energy Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Valero Energy Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Valero Energy Corporation has an earnings yield of 5.44%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Valero Energy Corporation is overvalued relative to its fair value price of 137.46 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Valero Energy Corporation has an EV/EBITDA ratio of 9.09x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Valero Energy Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Valero Energy Corporation has a price-to-book ratio of 3.24x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Valero Energy Corporation has a price-to-sales ratio of 0.61x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue