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:
We started the process of determining a valid price forecast for Valero Energy Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Valero Energy Corp ranked in the 33th 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:
VLO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 5%; for context, that number is higher than 40.77% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Valero Energy Corp has a reliance on debt greater than only 21.25% of them.
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 TGA, CRBO, FLMN, RDS.A, and PBR.
HOUSTON--(BUSINESS WIRE)--Westlake Chemical Corporation (NYSE: WLK) today announced that Ms. Kimberly S. Lubel has been elected to serve on the company’s board of directors as a new member. Ms. Lubel was elected to serve a three-year term at the company’s Annual Meeting of Stockholders, held today. Ms. Lubel is the former chairman, president and chief executive officer of CST Brands, Inc., and a former senior executive of Valero Energy Corporation. Additionally, the corporation announced that M
Independent U.S. refiner Valero Energy Corp said on Wednesday it took a $2 billion hit to the value of its refining inventory and swung to a loss in the first quarter as lockdowns to suppress the coronavirus crushed demand for its products.
For the first time in history, the price of US crude oil reached negative double-digits on Monday . Falling prices have forced oil companies to slash capital spending and cut oil production . In a note on Tuesday, Morgan Stanley said it supports "defensive positioning" across North American energy firms. The bank revealed 17 US stocks to buy and 12 that investors should shy away from. Visit Business Insider's homepage for more stories . The meltdown of the oil market has sent tremors through the oil and gas industry, where companies have already begun slashing budgets, laying off staff, and idling rigs . On Monday, the value of the US oil benchmark, West Texas intermediate, plunged into the negative double-digits , as traders raced to offload May futures contracts that expired on Tuesda...