VLO Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. In the case of VLO, the DDM model generated by StockNews estimates a return of positive 71.35% in comparison to its current price. Digging deeper, the aspects of Valero Energy Corp's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Valero Energy Corp's dividend yield of 10.83% is in the top 5.84%.
• Valero Energy Corp's market cap of $15 billion US dollars puts it in the large-sized market cap class; here, it has a lower equity discount rate than only 11.32% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for VLO, approximately 9.91% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

VLO Dividends vs. Peers