Stock Analysis on Net

Valero Energy Corp. (NYSE:VLO)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Valero Energy Corp., FCFF calculation

US$ in millions

Microsoft Excel
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).

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.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 65,029
Free cash flow to the firm (FCFF) 8,612
Valuation Ratio
EV/FCFF 7.55
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 15.15
ConocoPhillips 17.44
Exxon Mobil Corp. 13.84
Marathon Petroleum Corp. 7.25
Occidental Petroleum Corp. 12.13
Pioneer Natural Resources Co. 17.29
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 13.01
EV/FCFF, Industry
Energy 13.31

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
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
Marathon Petroleum Corp. 6.31 5.22 7.80 13.14
Occidental Petroleum Corp. 11.15 5.95 8.39 25.58 45.65
Pioneer Natural Resources Co. 15.55 6.73 9.41 67.23 173.74
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 11.89 7.29 10.53 331.68 21.78
EV/FCFF, Industry
Energy 12.19 7.75 10.84 194.07 22.00

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.

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.