Is Valero Energy Corp. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Valero Energy Corp. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 33, a Price to Book Value of 3.16, and an EV to EBITDA of 15.78. In comparison, Marathon Petroleum Corp. has a P/E ratio of 32.03 and an EV to EBITDA of 19.19, while Phillips 66 is even more expensive with a P/E of 57.54 and an EV to EBITDA of 28.30.
Despite the recent stock performance showing Valero outperforming the S&P 500 with a year-to-date return of 33.66% compared to the index's 12.22%, the elevated valuation ratios suggest that the stock may not be a prudent investment at current levels.