Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Valero Energy Corp., current price multiples
| Valero Energy Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $128.73 | |||||||||
| No. shares of common stock outstanding | 316,585,228 | |||||||||
| Growth rate (g) | 5.11% | |||||||||
| Earnings per share (EPS) | $27.91 | |||||||||
| Next year expected EPS | $29.33 | |||||||||
| Operating profit per share | $37.46 | |||||||||
| Sales per share | $457.27 | |||||||||
| Book value per share (BVPS) | $83.22 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 4.61 | 15.24 | 13.02 | 14.71 | 18.98 | 12.90 | 12.84 | |||
| Price to next year expected earnings | 4.39 | 14.37 | 12.01 | 13.99 | 16.56 | 12.35 | 12.34 | |||
| Price-earnings-growth (PEG) | 0.90 | 2.50 | 1.55 | 2.85 | 1.30 | 2.89 | 3.14 | |||
| Price to operating profit (P/OP) | 3.44 | 9.52 | 8.25 | 9.91 | 10.29 | 8.56 | 8.59 | |||
| Price to sales (P/S) | 0.28 | 1.39 | 2.20 | 1.46 | 1.69 | 1.51 | 1.51 | |||
| Price to book value (P/BV) | 1.55 | 1.77 | 1.86 | 1.88 | 1.32 | 2.09 | 2.11 | |||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Valero Energy Corp., historical price multiples
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits significant fluctuations over the observed period. It started at 12.12 in 2019, with no data for 2020, followed by a sharp increase to 37.78 in 2021. Subsequently, it declined substantially to 4.26 in 2022 and slightly increased to 5.26 in 2023. This pattern indicates varying market expectations or changes in earnings performance, with a notably high valuation in 2021 followed by more moderate valuations.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a trend somewhat parallel to the P/E ratio, beginning at 7.65 in 2019 (with 2020 data missing), increasing markedly to 16.5 in 2021. It then decreased sharply to 3.13 in 2022 and experienced a slight rise to 3.92 in 2023. This movement reflects significant changes in operating profitability relative to market price, suggesting improved operational efficiency or earnings adjustments in the later years.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrates relatively minor volatility across the period. It increased from 0.27 in 2019 to 0.48 in 2020, then declined to 0.31 in 2021, followed by a slight decrease to 0.28 in 2022 and a modest rise to 0.32 in 2023. Overall, these variations indicate stable revenue valuation trends with modest fluctuations in the market’s pricing relative to sales.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio shows a generally increasing trend from 1.35 in 2019 to a peak of 2.09 in 2022, indicating a growing market valuation relative to the book value. However, there is a decline to 1.76 in 2023. This suggests the market’s perception of the company’s net asset value strengthened until 2022 but softened somewhat in the most recent year.
Price to Earnings (P/E)
Valero Energy Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 332,481,908 | 371,150,836 | 409,303,630 | 408,562,891 | 409,337,126 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Valero Energy Corporation stockholders (in millions) | 8,835) | 11,528) | 930) | (1,421) | 2,422) | |
| Earnings per share (EPS)2 | 26.57 | 31.06 | 2.27 | -3.48 | 5.92 | |
| Share price1, 3 | 139.78 | 132.43 | 85.84 | 75.81 | 71.72 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 5.26 | 4.26 | 37.78 | — | 12.12 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 13.42 | 8.71 | 16.81 | — | — | |
| ConocoPhillips | 11.92 | 7.07 | 14.66 | — | — | |
| Exxon Mobil Corp. | 11.49 | 8.01 | 14.11 | — | — | |
| Occidental Petroleum Corp. | 13.36 | 4.24 | 23.89 | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 12.23 | 7.69 | 15.38 | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 12.52 | 8.11 | 15.92 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) attributable to Valero Energy Corporation stockholders ÷ No. shares of common stock outstanding
= 8,835,000,000 ÷ 332,481,908 = 26.57
3 Closing price as at the filing date of Valero Energy Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 139.78 ÷ 26.57 = 5.26
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a steady upward trend over the five-year period. Starting at $71.72 in 2019, it increased to $75.81 in 2020, followed by $85.84 in 2021. The most significant rise occurred in 2022, reaching $132.43, and it continued to grow to $139.78 in 2023. This suggests a sustained investor confidence and market valuation improvement over time.
- Earnings Per Share (EPS)
- EPS showed considerable volatility across the years. In 2019, the EPS was positive at $5.92. It then dropped sharply to a negative figure of -$3.48 in 2020, indicating a loss during that year. A recovery began in 2021 with a modest positive EPS of $2.27, which was followed by a substantial increase to $31.06 in 2022. In 2023, EPS slightly declined but remained high at $26.57. This pattern reflects fluctuating profitability, with a strong turnaround post-2020.
- Price to Earnings (P/E) Ratio
- The P/E ratio data reveals fluctuations consistent with EPS variability. It started at 12.12 in 2019, but the ratio is missing for 2020, likely due to the negative EPS making the ratio undefined or not meaningful. The ratio then escalated markedly to 37.78 in 2021, suggesting that the market priced the stock at a high premium relative to earnings. Subsequently, the P/E ratio dropped substantially to 4.26 in 2022, reflecting the large increase in EPS relative to the share price. In 2023, the ratio slightly increased to 5.26, indicating the market adjusted its valuation in line with the slight EPS decrease while share price continued to rise.
Price to Operating Profit (P/OP)
Valero Energy Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 332,481,908 | 371,150,836 | 409,303,630 | 408,562,891 | 409,337,126 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 11,858) | 15,690) | 2,130) | (1,579) | 3,836) | |
| Operating profit per share2 | 35.67 | 42.27 | 5.20 | -3.86 | 9.37 | |
| Share price1, 3 | 139.78 | 132.43 | 85.84 | 75.81 | 71.72 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 3.92 | 3.13 | 16.50 | — | 7.65 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 9.48 | 6.12 | 11.40 | — | — | |
| ConocoPhillips | 7.61 | 4.57 | 8.66 | — | — | |
| Exxon Mobil Corp. | 7.62 | 5.65 | 9.86 | — | — | |
| Occidental Petroleum Corp. | 7.37 | 3.78 | 7.96 | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.12 | 5.45 | 10.00 | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 8.38 | 5.78 | 10.37 | — | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 11,858,000,000 ÷ 332,481,908 = 35.67
3 Closing price as at the filing date of Valero Energy Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 139.78 ÷ 35.67 = 3.92
5 Click competitor name to see calculations.
The financial data demonstrates marked fluctuations in the operational performance and market valuation over the analyzed periods.
- Share Price
- The share price shows a persistent upward trend across the five years. Starting at $71.72 at the end of 2019, it increased moderately in 2020 and 2021 to $75.81 and $85.84, respectively. A significant jump is observed in 2022 and 2023, with prices reaching $132.43 and $139.78. This consistent rise indicates strengthened investor confidence and possibly improved market perception despite intermediate fluctuations in operating profitability.
- Operating Profit per Share
- Operating profit per share exhibits considerable volatility. Initially, it was $9.37 in 2019 but declined sharply to a negative value of -$3.86 in 2020, signaling operational challenges during that year. A recovery phase followed, with the metric climbing back to $5.20 in 2021. A substantial surge occurred in 2022, reaching $42.27, which suggests a remarkable improvement in operational efficiency or profitability drivers. In 2023, the figure slightly declined to $35.67, though it remained significantly higher than pre-2022 levels.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio was 7.65 in 2019, reflecting the relationship between market price and operating profit per share at that time. The absence of a ratio for 2020 is due to the negative operating profit, which makes this measure undefined or not meaningful. In 2021, the ratio increased to 16.5, indicating a higher market valuation relative to operating profit, possibly due to recovery expectations. The ratio decreased substantially in 2022 to 3.13, coinciding with the sharp rise in operating profit, implying the stock became more favorably priced concerning earnings. A slight increase to 3.92 in 2023 suggests stabilization of market valuation relative to operating profit.
Price to Sales (P/S)
Valero Energy Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 332,481,908 | 371,150,836 | 409,303,630 | 408,562,891 | 409,337,126 | |
| Selected Financial Data (US$) | ||||||
| Revenues, includes excise taxes on sales by certain of foreign operations (in millions) | 144,766) | 176,383) | 113,977) | 64,912) | 108,324) | |
| Sales per share2 | 435.41 | 475.23 | 278.47 | 158.88 | 264.63 | |
| Share price1, 3 | 139.78 | 132.43 | 85.84 | 75.81 | 71.72 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.32 | 0.28 | 0.31 | 0.48 | 0.27 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.46 | 1.31 | 1.69 | 2.09 | — | |
| ConocoPhillips | 2.33 | 1.68 | 2.58 | 3.52 | — | |
| Exxon Mobil Corp. | 1.24 | 1.12 | 1.17 | 1.34 | — | |
| Occidental Petroleum Corp. | 1.78 | 1.45 | 1.40 | 1.39 | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.43 | 1.25 | 1.47 | 1.71 | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.47 | 1.31 | 1.51 | 1.68 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Revenues, includes excise taxes on sales by certain of foreign operations ÷ No. shares of common stock outstanding
= 144,766,000,000 ÷ 332,481,908 = 435.41
3 Closing price as at the filing date of Valero Energy Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 139.78 ÷ 435.41 = 0.32
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrates a consistent upward trajectory over the five-year period. Beginning at $71.72 at the end of 2019, it experiences modest growth through 2020 and 2021, followed by a significant increase in 2022 to $132.43. The price continues to rise, albeit at a slower pace, reaching $139.78 by the end of 2023.
- Sales Per Share Analysis
- Sales per share exhibit volatility during the period analyzed. There is a notable decline from $264.63 in 2019 to $158.88 in 2020, suggesting a contraction in revenue relative to outstanding shares or a change in business conditions during that year. Subsequently, sales per share increase sharply in 2021, reaching $278.47, and continue to rise substantially to $475.23 in 2022. In 2023, sales per share decrease to $435.41, indicating a slight reduction in per-share sales compared to the previous year, yet they remain significantly higher than pre-2022 levels.
- Price-to-Sales Ratio (P/S) Observations
- The P/S ratio oscillates moderately over the five-year span. It starts at 0.27 in 2019 and peaks at 0.48 in 2020, implying that the market valued the company more highly relative to its sales during the pandemic year despite a drop in sales per share. The ratio declines in 2021 to 0.31 and reaches a low of 0.28 in 2022, reflecting that the share price increase is accompanied by a proportionally larger increase in sales per share during these years. In 2023, the ratio rises again slightly to 0.32, suggesting a modest shift toward a higher market valuation relative to sales.
- Summary Insights
- The analysis indicates a strong recovery and growth in the company’s operational performance post-2020, as evidenced by the rebound and sharp rise in sales per share from 2021 onward. The share price growth aligns with increasing sales per share, reinforcing investor confidence. Meanwhile, fluctuations in the P/S ratio suggest that market valuation relative to sales adjusted dynamically during the period, possibly in response to external market conditions and company-specific factors. Overall, the data points to a positive growth trajectory with some volatility present in sales performance and valuation metrics.
Price to Book Value (P/BV)
Valero Energy Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 332,481,908 | 371,150,836 | 409,303,630 | 408,562,891 | 409,337,126 | |
| Selected Financial Data (US$) | ||||||
| Total Valero Energy Corporation stockholders’ equity (in millions) | 26,346) | 23,561) | 18,430) | 18,801) | 21,803) | |
| Book value per share (BVPS)2 | 79.24 | 63.48 | 45.03 | 46.02 | 53.26 | |
| Share price1, 3 | 139.78 | 132.43 | 85.84 | 75.81 | 71.72 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.76 | 2.09 | 1.91 | 1.65 | 1.35 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.78 | 1.94 | 1.89 | 1.50 | — | |
| ConocoPhillips | 2.65 | 2.75 | 2.61 | 2.22 | — | |
| Exxon Mobil Corp. | 2.02 | 2.29 | 1.93 | 1.53 | — | |
| Occidental Petroleum Corp. | 1.67 | 1.76 | 1.79 | 1.33 | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.98 | 2.18 | 1.99 | 1.57 | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.05 | 2.27 | 2.06 | 1.60 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total Valero Energy Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 26,346,000,000 ÷ 332,481,908 = 79.24
3 Closing price as at the filing date of Valero Energy Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 139.78 ÷ 79.24 = 1.76
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trend over the period. Starting at $71.72 in 2019, it increased modestly to $75.81 in 2020 and then to $85.84 in 2021. A significant rise occurred in 2022, with the price reaching $132.43, followed by a further increase to $139.78 in 2023. This progression indicates growing market confidence or improved company performance influencing investor sentiment.
- Book Value Per Share (BVPS)
- BVPS initially declined from $53.26 in 2019 to $46.02 in 2020 and slightly further to $45.03 in 2021. However, a strong recovery began in 2022, when BVPS jumped notably to $63.48, and this upward trajectory continued into 2023, reaching $79.24. This pattern suggests that the company rebuilt its net asset base significantly after a period of reduction or stagnant growth.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio increased steadily from 1.35 in 2019 to reach a peak of 2.09 in 2022, reflecting that the share price was increasing at a faster rate than the book value per share. In 2023, the ratio decreased to 1.76, indicating a relative contraction in valuation multiples compared to the previous year, potentially due to the substantial increase in book value per share or a stabilization in market valuation adjustments.