Latest Ratios: P/E Ratio 35.2x · EV/EBITDA 11.6x · ROE 8.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $79.6B | $50.3B | $39.5B | $45.9B | $50.2B | $30.6B | $23.0B | $38.7B | $32.1B | $40.8B | $31.7B |
| Enterprise Value | $86.6B | $57.3B | $46.4B | $53.1B | $58.1B | $41.6B | $35.6B | $47.1B | $38.2B | $43.8B | $34.9B |
| P/E Ratio → | 35.17 | 21.50 | 14.29 | 5.21 | 4.37 | 33.09 | — | 16.01 | 10.28 | 10.03 | 13.83 |
| P/S Ratio | 0.65 | 0.41 | 0.30 | 0.32 | 0.28 | 0.27 | 0.35 | 0.36 | 0.27 | 0.43 | 0.42 |
| P/B Ratio | 3.09 | 1.89 | 1.43 | 1.61 | 1.97 | 1.54 | 1.17 | 1.72 | 1.41 | 1.78 | 1.52 |
| P/FCF | 15.83 | 10.00 | 6.83 | 5.52 | 4.61 | 7.29 | — | — | 13.96 | 9.95 | 8.95 |
| P/OCF | 13.66 | 8.63 | 5.91 | 4.97 | 4.00 | 5.22 | 24.29 | 122.79 | 7.34 | 7.44 | 6.58 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.47 | 0.36 | 0.37 | 0.33 | 0.36 | 0.55 | 0.43 | 0.33 | 0.47 | 0.46 |
| EV / EBITDA | 11.60 | 7.67 | 7.10 | 3.65 | 3.20 | 9.17 | 46.06 | 7.73 | 5.75 | 7.85 | 6.38 |
| EV / EBIT | 20.09 | 16.10 | 10.90 | 4.44 | 3.66 | 19.37 | — | 12.12 | 8.31 | 12.16 | 9.63 |
| EV / FCF | — | 11.40 | 8.03 | 6.38 | 5.33 | 9.91 | — | — | 16.62 | 10.68 | 9.85 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 4.4% | 4.4% | 3.7% | 8.9% | 9.5% | 2.7% | -1.2% | 4.4% | 4.7% | 4.8% | 5.7% |
| Operating Margin | 3.5% | 3.5% | 2.9% | 8.2% | 8.9% | 1.9% | -2.4% | 3.5% | 3.9% | 3.8% | 4.7% |
| Net Profit Margin | 1.9% | 1.9% | 2.1% | 6.1% | 6.5% | 0.8% | -2.2% | 2.2% | 2.7% | 4.3% | 3.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.7% | 8.7% | 9.9% | 32.7% | 50.9% | 4.7% | -6.8% | 10.7% | 13.7% | 18.6% | 10.8% |
| ROA | 4.0% | 4.0% | 4.5% | 14.2% | 19.4% | 1.7% | -2.7% | 4.7% | 6.2% | 8.4% | 5.1% |
| ROIC | 9.5% | 9.5% | 8.0% | 25.8% | 36.7% | 5.1% | -3.8% | 9.6% | 12.5% | 10.8% | 11.0% |
| ROCE | 9.7% | 9.7% | 8.3% | 26.4% | 37.1% | 5.1% | -3.8% | 9.6% | 11.6% | 9.4% | 9.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.42 | 0.44 | 0.50 | 0.76 | 0.81 | 0.49 | 0.40 | 0.39 | 0.38 |
| Debt / EBITDA | 1.57 | 1.57 | 1.77 | 0.87 | 0.70 | 3.34 | 20.53 | 1.80 | 1.37 | 1.59 | 1.46 |
| Net Debt / Equity | — | 0.26 | 0.25 | 0.25 | 0.31 | 0.56 | 0.64 | 0.37 | 0.27 | 0.13 | 0.15 |
| Net Debt / EBITDA | 0.94 | 0.94 | 1.05 | 0.50 | 0.43 | 2.43 | 16.24 | 1.38 | 0.92 | 0.54 | 0.58 |
| Debt / FCF | — | 1.39 | 1.19 | 0.87 | 0.72 | 2.62 | — | — | 2.67 | 0.74 | 0.90 |
| Interest Coverage | 6.40 | 6.40 | 7.65 | 20.20 | 28.24 | 3.56 | -2.57 | 8.55 | 9.79 | 7.70 | 8.12 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.65 | 1.65 | 1.53 | 1.56 | 1.38 | 1.26 | 1.71 | 1.44 | 1.65 | 1.74 | 2.02 |
| Quick Ratio | 1.11 | 1.11 | 1.03 | 1.11 | 1.00 | 0.88 | 1.06 | 0.91 | 1.04 | 1.17 | 1.33 |
| Cash Ratio | 0.33 | 0.33 | 0.30 | 0.32 | 0.28 | 0.24 | 0.36 | 0.20 | 0.28 | 0.53 | 0.58 |
| Asset Turnover | — | 2.12 | 2.16 | 2.30 | 2.89 | 1.97 | 1.25 | 2.01 | 2.33 | 1.87 | 1.64 |
| Inventory Turnover | 15.45 | 15.45 | 16.12 | 17.39 | 23.64 | 17.70 | 10.88 | 14.77 | 17.07 | 14.02 | 12.49 |
| Days Sales Outstanding | — | 29.38 | 30.09 | 31.58 | 24.66 | 33.23 | 34.35 | 30.00 | 22.91 | 26.88 | 28.47 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 2.8% | 3.5% | 3.2% | 3.1% | 5.2% | 6.9% | 3.9% | 4.3% | 3.0% | 3.5% |
| Payout Ratio | 59.8% | 59.8% | 50.0% | 16.4% | 13.5% | 172.3% | — | 61.6% | 43.9% | 30.6% | 48.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 4.7% | 7.0% | 19.2% | 22.9% | 3.0% | — | 6.2% | 9.7% | 10.0% | 7.2% |
| FCF Yield | 6.3% | 10.0% | 14.6% | 18.1% | 21.7% | 13.7% | — | — | 7.2% | 10.1% | 11.2% |
| Buyback Yield | 3.3% | 5.2% | 7.3% | 11.2% | 9.1% | 0.1% | 0.7% | 4.5% | 5.3% | 3.4% | 4.2% |
| Total Shareholder Yield | 5.0% | 8.0% | 10.8% | 14.4% | 12.2% | 5.3% | 7.6% | 8.3% | 9.6% | 6.4% | 7.7% |
| Shares Outstanding | — | $309M | $322M | $353M | $396M | $407M | $407M | $413M | $428M | $444M | $464M |
Feedstock spread volatility
According to recent market data, VLO trades at a trailing P/E of 34.26, yet the forward P/E of 9.25 suggests that investors anticipate a significant earnings recovery, reflecting the market's tendency to discount current cyclical troughs while pricing in potential normalization of refining margins over the coming year.
The wide divergence between trailing and forward multiples indicates that the market is currently looking past recent margin compression to a more normalized environment. Investors should monitor whether the forward multiple remains compressed, as this may suggest the market views the current earnings power as unsustainable or overly dependent on temporary commodity tailwinds.
Based on reported financial figures, Valero's ROIC has fluctuated significantly, reaching a recent peak of 3.9% in 2026Q1, which underscores the company's reliance on favorable crack spreads to generate returns that exceed its cost of capital in a highly capital-intensive, asset-heavy refining business model.
The volatility in ROIC highlights that Valero's ability to compound capital is structurally tethered to the delta between feedstock costs and product prices. While the current trend shows a recovery from negative returns in early 2025, the modest absolute level of ROIC suggests that the company faces ongoing challenges in achieving sustained value creation above its hurdle rate.
As reported in quarterly filings, Valero has maintained a stable cash conversion cycle of approximately 20 days, demonstrating consistent efficiency in managing inventory and receivables despite the inherent complexities of operating a large-scale refining fleet across volatile global energy markets and shifting demand patterns.
The stability of the cash conversion cycle suggests that management has successfully optimized its operational throughput and supplier relationships. This efficiency provides a critical buffer, ensuring that liquidity is not unnecessarily trapped in working capital during periods of rapid commodity price shifts or scheduled refinery maintenance turnarounds.
According to balance sheet data, Valero maintains a conservative debt-to-equity ratio of 0.43 as of 2026Q1, which provides the company with a significant structural advantage over more highly levered peers and offers substantial flexibility to navigate potential downturns in the refining cycle without compromising its capital allocation strategy.
This low leverage profile appears to be a deliberate strategic choice, allowing the firm to prioritize shareholder returns even when margins are under pressure. The interest coverage ratio of 11.42 further indicates that debt service remains well-supported, reducing the risk of financial distress during periods of heightened market volatility.
Investors frequently misapply the trailing P/E ratio to Valero, failing to account for the distortive impact of LIFO inventory accounting and cyclical margin swings, which often render historical earnings an unreliable indicator of the company's true underlying cash-generating capacity and long-term operational value.
Because refining earnings are highly sensitive to non-cash inventory valuation adjustments, the P/E ratio often obscures the company's actual cash flow generation. Analysts should instead prioritize EV/EBITDA or free cash flow yield to better assess the company's valuation relative to its ability to fund operations and return capital to shareholders.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VLO stock.
Valero Energy Corporation's current P/E ratio is 35.2x. The historical average is 15.0x. This places it at the 88th percentile of its historical range.
Valero Energy Corporation's current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Valero Energy Corporation's return on equity (ROE) is 8.7%. The historical average is 13.4%.
Based on historical data, Valero Energy Corporation is trading at a P/E of 35.2x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Valero Energy Corporation's current dividend yield is 1.71% with a payout ratio of 59.8%.
Valero Energy Corporation has 4.4% gross margin and 3.5% operating margin.
Valero Energy Corporation's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.