Valero Energy Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Net income attributable to noncontrolling interests	314)	351)	358)	314)	362)
Net noncash charges	2,406)	2,321)	2,346)	2,400)	2,453)
Changes in current assets and current liabilities	(2,326)	(1,626)	2,225)	(345)	294)
Net cash provided by operating activities	9,229)	12,574)	5,859)	948)	5,531)
Interest paid in excess of amount capitalized, including interest on finance leases, net of tax¹	437)	442)	499)	290)	361)
Capitalized interest, net of tax²	15)	44)	40)	41)	72)
Capital expenditures, excluding variable interest entities (VIEs)	(665)	(788)	(513)	(1,014)	(1,627)
Capital expenditures of VIEs	(246)	(893)	(1,152)	(774)	(367)
Changes in lease balances resulting from new and modified finance leases	(157)	(660)	(378)	(950)	(239)
Free cash flow to the firm (FCFF)	8,612)	10,720)	4,355)	(1,459)	3,731)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Valero Energy Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Valero Energy Corp. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Valero Energy Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	22.30%	22.40%	16.50%	44.90%	20.10%
Interest Paid, Net of Tax
Interest paid in excess of amount capitalized, including interest on finance leases, before tax	562)	570)	598)	526)	452)
Less: Interest paid in excess of amount capitalized, including interest on finance leases, tax²	125)	128)	99)	236)	91)
Interest paid in excess of amount capitalized, including interest on finance leases, net of tax	437)	442)	499)	290)	361)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	19)	57)	48)	75)	90)
Less: Capitalized interest, tax³	4)	13)	8)	34)	18)
Capitalized interest, net of tax	15)	44)	40)	41)	72)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Interest paid in excess of amount capitalized, including interest on finance leases, tax = Interest paid in excess of amount capitalized, including interest on finance leases × EITR
= 562 × 22.30% = 125

³ 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 19 × 22.30% = 4

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Valero Energy Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	49,032)
Free cash flow to the firm (FCFF)	8,612)
Valuation Ratio
EV/FCFF	5.69
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	13.36
ConocoPhillips	13.11
Exxon Mobil Corp.	13.96
Occidental Petroleum Corp.	10.26
Texas Pacific Land Corp.	62.76
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	13.58
EV/FCFF, Industry
Energy	13.60

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Valero Energy Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	54,752)	57,832)	46,270)	43,178)	37,180)
Free cash flow to the firm (FCFF)²	8,612)	10,720)	4,355)	(1,459)	3,731)
Valuation Ratio
EV/FCFF³	6.36	5.39	10.62	—	9.96
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	14.85	8.27	13.33	106.63	16.67
ConocoPhillips	15.38	7.43	10.72	92.48	13.21
Exxon Mobil Corp.	12.47	7.84	10.06	—	44.38
Occidental Petroleum Corp.	11.15	5.95	8.39	25.58	45.65
Texas Pacific Land Corp.	27.15	30.97	29.56	41.31	15.95
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	13.47	7.79	10.92	157.46	24.13
EV/FCFF, Industry
Energy	13.77	8.36	11.27	115.22	24.22

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 54,752 ÷ 8,612 = 6.36

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Valero Energy Corp. EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Valero Energy Corp. (NYSE:VLO)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical