Valero Energy Valuation

VLO Stock  USD 167.81  0.56  0.33%   
At this time, the company appears to be fairly valued. Valero Energy has a current Real Value of $168.28 per share. The regular price of the company is $167.81. Our model measures the value of Valero Energy from inspecting the company fundamentals such as Shares Outstanding of 332.48 M, operating margin of 0.05 %, and Return On Equity of 0.34 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
2.1107
Enterprise Value
62.8 B
Enterprise Value Ebitda
4.1711
Price Sales
0.4001
Forward PE
11.5473
Fairly Valued
Today
167.81
Please note that Valero Energy's price fluctuation is very steady at this time. Calculation of the real value of Valero Energy is based on 3 months time horizon. Increasing Valero Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Valero Energy is useful when determining the fair value of the Valero stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Valero Energy. Since Valero Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Valero Stock. However, Valero Energy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  167.81 Real  168.28 Target  150.47 Hype  168.22 Naive  168.58
The real value of Valero Stock, also known as its intrinsic value, is the underlying worth of Valero Energy Company, which is reflected in its stock price. It is based on Valero Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Valero Energy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Valero Energy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
166.60
Downside
168.28
Real Value
169.96
Upside
Estimating the potential upside or downside of Valero Energy helps investors to forecast how Valero stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Valero Energy more accurately as focusing exclusively on Valero Energy's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.123.123.65
Details
Hype
Prediction
LowEstimatedHigh
166.54168.22169.90
Details
Potential
Annual Dividend
LowForecastedHigh
2.622.702.77
Details
21 Analysts
Consensus
LowTarget PriceHigh
136.93150.47167.02
Details

Valero Energy Investments

(2.01 Billion)

Valero Energy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Valero Energy's current stock value. Our valuation model uses many indicators to compare Valero Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Valero Energy competition to find correlations between indicators driving Valero Energy's intrinsic value. More Info.
Valero Energy is rated fourth in price to sales category among related companies. It is rated fourth in price to book category among related companies fabricating about  5.28  of Price To Book per Price To Sales. As of the 28th of March 2024, Price To Book Ratio is likely to drop to 0.95. Comparative valuation analysis is a catch-all model that can be used if you cannot value Valero Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Valero Energy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Valero Energy's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Valero Energy's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Valero Energy and how it compares across the competition.

About Valero Energy Valuation

The stock valuation mechanism determines the current worth of Valero Energy on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Valero Energy. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Valero Energy based exclusively on its fundamental and basic technical indicators. By analyzing Valero Energy's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Valero Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Valero Energy. We calculate exposure to Valero Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Valero Energy's related companies.
Last ReportedProjected for 2024
Gross Profit13.2 B13.8 B
Pretax Profit Margin 0.08  0.04 
Operating Profit Margin 0.08  0.05 
Net Profit Margin 0.06  0.06 
Gross Profit Margin 0.09  0.09 

8 Steps to conduct Valero Energy's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Valero Energy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Valero Energy's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Valero Energy's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Valero Energy's revenue streams: Identify Valero Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Valero Energy's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Valero Energy's growth potential: Evaluate Valero Energy's management, business model, and growth potential.
  • Determine Valero Energy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Valero Energy's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Valero Energy's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Valero Energy's value is low or high relative to the company's performance and growth projections. Determining the market value of Valero Energy can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Valero Energy represents a small ownership stake in the entity. As a stockholder of Valero, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Valero Energy Dividends Analysis For Valuation

As of the 28th of March 2024, Dividend Payout Ratio is likely to grow to 0.28, though Dividends Paid is likely to grow to (1.4 B). . As of the 28th of March 2024, Retained Earnings is likely to grow to about 47.9 B, while Retained Earnings Total Equity is likely to drop about 26.6 B.
Last ReportedProjected for 2024
Dividends Paid-1.5 B-1.4 B
Dividend Yield 0.03  0.02 
Dividend Payout Ratio 0.16  0.28 
Dividend Paid And Capex Coverage Ratio(19.89)(18.90)
There are various types of dividends Valero Energy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Valero shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Valero Energy directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Valero pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Valero Energy by the value of the dividends paid out.

Valero Energy Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Valero Energy does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding353 M
Quarterly Earnings Growth Y O Y-0.571
Forward Price Earnings11.5473

Valero Energy Current Valuation Indicators

Valuation refers to the process of determining the present value of Valero Energy and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Valero we look at many different elements of the entity such as Valero's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Valero Energy's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Valero Energy's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Valero Energy, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Valero Energy's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Valero Energy's worth.
When determining whether Valero Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Valero Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Valero Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Valero Energy Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Valero Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
To learn how to invest in Valero Stock, please use our How to Invest in Valero Energy guide.
You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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Is Valero Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Valero Energy. If investors know Valero will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Valero Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.57)
Dividend Share
4.08
Earnings Share
24.92
Revenue Per Share
393.771
Quarterly Revenue Growth
(0.16)
The market value of Valero Energy is measured differently than its book value, which is the value of Valero that is recorded on the company's balance sheet. Investors also form their own opinion of Valero Energy's value that differs from its market value or its book value, called intrinsic value, which is Valero Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Valero Energy's market value can be influenced by many factors that don't directly affect Valero Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Valero Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valero Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valero Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.