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:
Below please find a table outlining a discounted cash flow forecast for VLO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Valero Energy Corp ranked in the 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 187.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for VLO, they are:
Valero Energy Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 13.21% 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 21.82% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KMI, EOG, CKH, NINE, and SHI can be thought of as valuation peers to VLO, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.