Valuation Tensions | Analysts present price targets ranging from $184 to $195, reflecting debates over Valero's premium trading multiples amid shifting refining dynamics |
Venezuelan Advantage | Valero's position as the largest U.S. importer of Venezuelan crude, capturing 37% of imports, provides strategic feedstock access and margin advantages |
Capacity Headwinds | Explore how increasing global refining capacity in 2026 threatens to pressure margins despite the company's operational excellence and Gulf Coast positioning |
Operational Excellence | The refiner's best-in-class assets, consistent execution through market cycles, and robust free cash flow generation support competitive differentiation |
Metrics to compare | VLO | Sector Sector - Average of metrics from a broad group of related Energy sector companies | Relationship RelationshipVLOPeersSector | |
|---|---|---|---|---|
P/E Ratio | 21.3x | 18.4x | 5.4x | |
PEG Ratio | 0.06 | 0.27 | 0.00 | |
Price/Book | 3.7x | 1.5x | 1.1x | |
Price / LTM Sales | 0.8x | 0.9x | 1.4x | |
Upside (Analyst Target) | −2.4% | 18.9% | 31.0% | |
Fair Value Upside | Unlock | 26.7% | 8.4% | Unlock |
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, Shamrock, Ultramar, and Texaco brands. The company also owns and operates renewable diesel and ethanol plants, as well as produces and sells renewable diesel, renewable naphtha, and neat sustainable aviation fuel under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distillers grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.