Valero Energy Corporation (VLO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-16.6%

$321.17

vs $385.13 price

Levered DCF

$333.68

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

6.3

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.5×	14.29×	5.21×	4.36×	33.09×	-16.16×	16.01×	10.23×
P/B	2.12×	1.61×	1.74×	2.13×	1.66×	1.22×	1.77×	1.47×
P/S	0.41×	0.3×	0.32×	0.28×	0.27×	0.35×	0.36×	0.27×
EV / EBITDA	8.53×	6.6×	3.62×	3.16×	9.13×	39.33×	7.67×	5.71×
Gross margin	4.4%	3.7%	8.9%	9.5%	2.7%	-1.2%	4.4%	4.7%
Operating margin	3.5%	2.9%	8.2%	8.9%	1.9%	-2.4%	3.5%	3.9%
Net margin	1.9%	2.1%	6.1%	6.5%	0.8%	-2.2%	2.2%	2.7%
Current ratio	1.65×	1.53×	1.56×	1.38×	1.26×	1.71×	1.44×	1.65×
Debt / equity	0.49×	0.47×	0.48×	0.54×	0.82×	0.84×	0.5×	0.42×
Interest coverage	7.76×	6.75×	20.03×	27.92×	3.53×	-2.8×	8.45×	9.73×
Dividend yield	2.8%	3.5%	3.2%	3.1%	5.2%	6.9%	3.9%	4.3%
Payout ratio	59.8%	50.0%	16.4%	13.5%	172.3%	-112.2%	61.6%	43.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.9%	11.3%	33.5%	48.9%	5.0%	-7.6%	11.1%	14.4%
Return on invested capital	7.1%	6.7%	19.2%	27.1%	4.2%	-2.0%	7.4%	9.1%
Return on assets	4.0%	4.6%	14.0%	18.9%	1.6%	-2.8%	4.5%	6.2%
Free cash flow yield	10.0%	14.6%	18.1%	21.7%	13.7%	-3.6%	-4.3%	7.2%
Earnings yield	4.7%	7.0%	19.3%	23.0%	3.0%	-6.2%	6.3%	9.8%
Enterprise value	$57.3B	$46.4B	$53.1B	$58B	$41.6B	$35.6B	$47.1B	$38.1B
Net debt / EBITDA	1.04×	0.98×	0.49×	0.43×	2.42×	13.87×	1.37×	0.92×
Cash conversion cycle (days)	21	17	18	11	13	34	19	16