InvestorsObserver gives Valero Energy Corporation (VLO) a weak valuation score of 0 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. VLO currently holds a better value than 0% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
VLO gets a 0 Valuation Rank today. Find out what this means to you and get the rest of the rankings on VLO!
VLO's trailing-12-month Price to Earnings (PE) ratio of 3.98 puts it below the historical average of roughly 15. VLO is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. VLO's trailing-12-month earnings per share (EPS) of 29.25 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
VLO currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.85. The market is currently fairly valuing VLO in relation to its projected growth due to the PEG ratio being around the fair market value of 1. VLO's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
