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Valero Energy Corporation (VLO) Stock: How Does it Score on Valuation Metrics?

Thursday, September 15, 2022 12:39 PM | InvestorsObserver Analysts

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Valero Energy Corporation (VLO) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Valero Energy Corporation (VLO) a strong valuation score of 77 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 77% 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.

Valuation Rank - 77
VLO gets a 77 Valuation Rank today. Find out what this means to you and get the rest of the rankings on VLO!

Metrics Analysis

VLO's trailing-12-month Price to Earnings (PE) ratio of 6.3 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 17.38 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 has a 12 month forward PE to Growth (PEG) ratio of 0.71. Markets are overvaluing VLO in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 17.3799991's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

VLO' has a strong valuation at its current share price on account of a undervalued PEG ratio due to strong growth. VLO's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Valero Energy Corporation (VLO) stock.

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