Valero Energy operates as an independent petroleum refining and marketing company in the United States, Canada, the Caribbean, the United Kingdom, and Ireland. It operates through two segments, Refining and Ethanol. The company was founded in 1955 and is based in San Antonio, Texas.
VLO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Valero Energy Corp. To summarize, we found that Valero Energy Corp ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for VLO, they are:
Its compound free cash flow growth rate, as measured over the past 5.43 years, is -0.07% -- higher than merely 16.56% of stocks in our DCF forecasting set.
Valero Energy Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 4.13% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 18.88% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as VLO, try NOV, FET, PSXP, BTE, and PBR.
Introduction When this latest Covid-19 economic downturn hit the world, it seemed quite likely that Valero Energy (VLO) would join the list of companies reducing their dividends. To their credit, they have managed to defy this pressure and keep their dividends flowing amidst this turmoil. Although when looking at their...
Daniel Thurecht on Seeking Alpha | September 28, 2020
Introduction Valero Energy (VLO) has been part of my portfolio for years. Valero is one of the largest independent refiners in the United States with 3.2 million barrels per day capacity and 15 refineries. Majority of Valero refineries are located in the advantageous Gulf Coast region. My investment strategy with...
Andrew Cournoyer on Seeking Alpha | September 21, 2020
SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE:VLO) (“Valero”) today announced that it will host a conference call on October 22, 2020, at 10:00 a.m. ET to discuss third quarter earnings results, which will be released earlier that day, and provide an update on company operations. Persons interested in listening to the presentation live via the internet may log on to Valero’s Investor Relations web site at www.investorvalero.com. About Valero Valero Energy Corporation, through it