Is Valero Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Valero Energy Corp. moved from very expensive to expensive, indicating a shift towards a less extreme valuation but still suggesting it is on the higher side. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 15.78, and a Price to Book Value of 3.16, which are all relatively high compared to its peers. For instance, Marathon Petroleum Corp. has a P/E of 32.03 and an EV to EBITDA of 19.19, while Phillips 66 shows even higher valuations with a P/E of 57.54.
In terms of stock performance, Valero Energy Corp. has delivered a year-to-date return of 28.70%, outperforming the S&P 500's 13.30% during the same period, though it lags behind the S&P 500 over three years with a return of 36.60% compared to 81.19%. This mixed performance, combined with its elevated valuation ratios, reinforces the conclusion that the stock is overvalued.