Is Valero Energy Corp. overvalued or undervalued?

As of 17 October 2025, Valero Energy Corp. has moved from a very expensive to an expensive valuation grade. 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. In comparison, Marathon Petroleum Corp. has a P/E of 32.03 and an EV to EBITDA of 19.19, while Phillips 66 shows a significantly higher P/E of 57.54 and an EV to EBITDA of 28.30, indicating that Valero's valuation is on the higher side relative to its peers.
Despite Valero's strong year-to-date return of 28.70%, which outperformed the S&P 500's 13.30%, its multi-year performance shows a stark contrast, with a 3-year return of 36.60% compared to the S&P 500's 81.19%. This suggests that while Valero has had a good run recently, its current valuation may not be justified when looking at longer-term performance against the benchmark.