Latest Ratios: P/E Ratio 58.7x · EV/EBITDA 18.6x · 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 | $132.0B | $50.3B | $39.5B | $45.9B | $50.2B | $30.6B | $23.0B | $38.7B | $32.1B | $40.8B | $31.7B |
| Enterprise Value | $139.1B | $57.3B | $46.4B | $53.1B | $58.1B | $41.6B | $35.6B | $47.1B | $38.2B | $43.8B | $34.9B |
| P/E Ratio → | 58.75 | 21.50 | 14.29 | 5.21 | 4.37 | 33.09 | — | 16.01 | 10.28 | 10.03 | 13.83 |
| P/S Ratio | 1.08 | 0.41 | 0.30 | 0.32 | 0.28 | 0.27 | 0.35 | 0.36 | 0.27 | 0.43 | 0.42 |
| P/B Ratio | 5.17 | 1.89 | 1.43 | 1.61 | 1.97 | 1.54 | 1.17 | 1.72 | 1.41 | 1.78 | 1.52 |
| P/FCF | 26.25 | 10.00 | 6.83 | 5.52 | 4.61 | 7.29 | — | — | 13.96 | 9.95 | 8.95 |
| P/OCF | 22.67 | 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 | 18.62 | 7.67 | 7.10 | 3.65 | 3.20 | 9.17 | 46.06 | 7.73 | 5.75 | 7.85 | 6.38 |
| EV / EBIT | 32.25 | 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 | 1.0% | 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 | 1.7% | 4.7% | 7.0% | 19.2% | 22.9% | 3.0% | — | 6.2% | 9.7% | 10.0% | 7.2% |
| FCF Yield | 3.8% | 10.0% | 14.6% | 18.1% | 21.7% | 13.7% | — | — | 7.2% | 10.1% | 11.2% |
| Buyback Yield | 2.0% | 5.2% | 7.3% | 11.2% | 9.1% | 0.1% | 0.7% | 4.5% | 5.3% | 3.4% | 4.2% |
| Total Shareholder Yield | 3.0% | 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 |
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 58.7x. The historical average is 15.0x. This places it at the 96th percentile of its historical range.
Valero Energy Corporation's current EV/EBITDA is 18.6x. 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 58.7x. This is at the 96th 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 1.02% 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.
Key Metrics
Top Statement Risk
Refining margin volatility persists
Metrics are mathematically derived from official filings.
Margin Rebound from Cyclical Trough
Gross margin surged to 19.5% in 2026Q2 from 1.6% in 2025Q1, as per SEC filings, driving operating margin to 14.2% and net margin to 10.2%, reflecting a sharp cyclical recovery.
The dramatic expansion in gross margin from the 2025Q1 trough underscores the operating leverage inherent in refining, where fixed costs are spread over a wider revenue base. Net margin of 10.2% in 2026Q2 is well above the 10-quarter average of roughly 3%, but historical volatility suggests this level may not be sustainable. Investors should monitor whether the margin improvement is driven by durable structural factors or temporary crack spreads.
ROIC Recovery Masks Cyclicality
ROIC rebounded to 12.1% in 2026Q2 from -2.0% in 2025Q1, as reported in financial statements, but the 10-quarter average of 3.4% indicates returns are highly sensitive to refining margins.
The sharp swing in ROIC from negative to double-digit within five quarters highlights the cyclical nature of the business, where returns on invested capital are driven more by commodity price cycles than by operational efficiency. While the current ROIC exceeds the cost of capital, the historical average suggests value creation is inconsistent. This pattern implies that investors should focus on mid-cycle returns rather than peak-period figures when assessing the company's compounding ability.
Working Capital Efficiency Stable
Cash conversion cycle held steady at 15-21 days over the last ten quarters, as per company filings, with DSO around 33 days and DPO around 37 days, indicating consistent working capital management.
The stable CCC, despite significant swings in commodity prices, suggests Valero manages its receivables and payables effectively, likely due to contractual terms with customers and suppliers. Asset turnover improved to 0.58 in 2026Q2 from 0.50 in 2025Q2, reflecting higher throughput and utilization. However, the modest asset turnover underscores the capital-intensive nature of refining, where efficiency gains are limited by the fixed asset base.
Conservative Leverage with Strong Coverage
Debt-to-EBITDA fell to 1.92 in 2026Q2 from 5.88 in 2025Q2, as per SEC filings, while interest coverage improved to 38.06, indicating a comfortable debt service position.
The dramatic improvement in leverage metrics is driven by the surge in EBITDA, not by debt reduction, as total debt remained around $11.3B. This highlights the cyclicality of leverage ratios in refining, where EBITDA swings can distort the true risk profile. Even at the trough in 2025Q1, interest coverage was negative, but the company's cash reserves and conservative D/E of 0.40 suggest it can withstand margin downturns without distress.
Liquidity Buffer Strengthens
Current ratio improved to 1.64 in 2026Q2, with cash rising to $7.9B from $4.7B in 2025Q4, as reported in financial statements, providing a robust cushion against margin volatility.
The quick ratio of 1.23 indicates that even without inventory, Valero can cover its short-term obligations, which is crucial given the commodity-driven swings in working capital. The cash build of $3.2B in two quarters reflects strong cash generation and prudent capital allocation. This liquidity position appears adequate to weather a potential downturn in refining margins, though the historical volatility in cash flows warrants caution.
P/E Misleads in Cyclical Downturn
The trailing P/E of 41.6 is distorted by depressed earnings, while forward P/E of 8.36 better reflects normalized earnings, as per reported figures, making EV/EBITDA a more reliable valuation metric.
In cyclical industries like refining, trailing P/E can be misleading because it divides a depressed earnings base by a market cap that anticipates recovery. The forward P/E of 8.36 suggests the market expects earnings to normalize, but this is still sensitive to margin assumptions. EV/EBITDA of 13.46 on trailing and 9.75 on forward provides a more stable comparison, yet it too is cyclical. Investors should use mid-cycle earnings or a through-the-cycle EV/EBITDA to avoid overpaying at the peak or undervaluing at the trough.