Is Valero Energy Corp. overvalued or undervalued?

As of 24 April 2025, Valero Energy Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 33, an EV to EBITDA ratio of 15.78, and a Price to Book Value of 3.16. In comparison, Marathon Petroleum Corp. has a P/E ratio of 27.23, while Phillips 66 stands at a higher P/E of 46.89, indicating that Valero's valuation is on the higher side relative to its peers.
Despite a high dividend yield of 102.37% and a ROE of 9.49%, the company's performance has been mixed, with a 1-year return of -8.75% compared to the S&P 500's 10.26%. This underperformance, along with the elevated valuation ratios, reinforces the assessment that Valero Energy Corp. is overvalued in the current market context.