Valero Energy Corporation

Valuation Analysis

About the Company

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB) and Conventional Blendstock for Oxygenate Blending (CBOB) gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock,

Valero Energy Corporation Stock at a Glance

Valero Energy Corporation (VLO) is currently trading at $258.67 with a market capitalization of $76.8B. The trailing P/E ratio stands at 18.91x, with a forward P/E of 12.1x. The 52-week range spans from $130.78 to $265.61; the current price is 2.6% below the yearly high. Year-over-year revenue growth stands at +6.6%. The net profit margin stands at 3.57%.

💰 Dividend

Valero Energy Corporation pays an annual dividend of $4.80 per share, representing a yield of 1.86%. The payout ratio stands at 33.53%.

📊 Analyst Rating

19 analysts rate Valero Energy Corporation (VLO) on consensus: Buy. The average price target is $261.21, implying +0.98% from the current price. Analyst price targets range from $181.00 to $300.00.

Valero Energy Corporation: The Investment Case in Detail

Valero Energy Corporation (VLO) operates in the Energy — specifically Oil & Gas Refining & Marketing — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

With a net margin of just 3.57%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

At a PEG of 4.08, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 9.3x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 12.1x is meaningfully below the trailing 18.91x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 94.9% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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