Is Valero Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Valero Energy Corp. has moved from very expensive to expensive. The company is currently considered overvalued based on its valuation ratios. The P/E ratio stands at 33, which is significantly higher than its peer Marathon Petroleum Corp. at 32.03, and the EV to EBITDA ratio is 15.78, also higher than Marathon's 19.19. Additionally, Valero's Price to Book Value is 3.16, indicating a premium over its book value compared to its peers.
In terms of performance, Valero has shown a year-to-date return of 28.70%, outperforming the S&P 500's return of 13.30% during the same period. However, over the longer term, Valero's 3-year return of 36.60% lags behind the S&P 500's impressive 81.19%. This mixed performance, combined with its high valuation ratios, reinforces the conclusion that Valero Energy Corp. is overvalued in the current market.