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. | 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 | 33.04 | 19.45 | 23.11 | 17.98 | 17.99 | |||
| Price to next year expected earnings | 4.39 | 31.60 | 17.34 | 21.33 | 16.30 | 16.29 | |||
| Price-earnings-growth (PEG) | 0.90 | 7.25 | 1.60 | 2.76 | 1.74 | 1.73 | |||
| Price to operating profit (P/OP) | 3.44 | 19.10 | 11.47 | 15.77 | 12.07 | 12.17 | |||
| Price to sales (P/S) | 0.28 | 2.20 | 2.64 | 2.06 | 2.09 | 2.10 | |||
| Price to book value (P/BV) | 1.55 | 2.18 | 2.41 | 2.57 | 2.96 | 3.00 | |||
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).
The valuation ratios exhibit a period of significant volatility between 2019 and 2023, characterized by sharp fluctuations in earnings-based multiples and more measured movements in asset and revenue-based metrics.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both profitability-linked ratios demonstrate a synchronized and volatile pattern. A substantial increase is observed in 2021, with P/E reaching 37.78 and P/OP rising to 16.50. This peak was followed by a sharp contraction in 2022, where P/E fell to 4.26 and P/OP declined to 3.13, before stabilizing slightly in 2023. This suggests extreme variance in net income and operating profits relative to the market price during this period.
- Price to Sales (P/S)
- The P/S ratio remained relatively constrained, fluctuating within a narrow range. After a peak of 0.48 in 2020, the ratio returned to levels consistent with the 2019 baseline of 0.27, ending the period at 0.32 in 2023. This stability indicates a consistent relationship between the market capitalization and the total revenue generated.
- Price to Book Value (P/BV)
- A general upward trajectory is evident from 2019 through 2022, with the ratio increasing from 1.35 to a peak of 2.09. A moderate correction occurred in 2023, bringing the ratio down to 1.76. This trend reflects an increasing premium over the company's net asset value for the majority of the analyzed timeframe.
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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 | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 12.17 | 8.08 | 15.11 | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 12.48 | 8.54 | 15.67 | — | — | |
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.
The financial trajectory from 2019 to 2023 is characterized by a consistent increase in share price contrasted with extreme volatility in earnings performance. While the share price grew steadily from 71.72 US$ to 139.78 US$, earnings per share experienced a severe contraction in 2020 followed by an aggressive expansion in 2022.
- Share Price Appreciation
- A sustained upward trend is evident, with a notable acceleration occurring between 2021 and 2022, where the price increased by approximately 54%. This growth continued into 2023, reaching a five-year peak of 139.78 US$.
- Earnings Per Share (EPS) Volatility
- Earnings exhibited significant instability, dropping from 5.92 US$ in 2019 to a loss of 3.48 US$ in 2020. A recovery phase began in 2021, leading to a substantial peak of 31.06 US$ in 2022, before moderating to 26.57 US$ in 2023.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio fluctuated inversely with earnings stability. The ratio was nonexistent in 2020 due to negative earnings. In 2021, the ratio spiked to 37.78, as the share price recovered more rapidly than earnings. However, the massive surge in EPS in 2022 and 2023 led to a sharp compression of the multiple, resulting in low P/E ratios of 4.26 and 5.26, respectively, indicating that the market valuation became significantly more aligned with high current profitability.
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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$) | ||||||
| Operating income (loss) (in millions) | 11,858) | 15,690) | 2,130) | (1,579) | 3,836) | |
| Operating profit per share2 | 35.67 | 42.27 | 5.20 | -3.86 | 9.37 | |
| Share price1, 3 | 139.78 | 132.43 | 85.84 | 75.81 | 71.72 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 3.92 | 3.13 | 16.50 | — | 7.65 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 9.48 | 6.12 | 11.40 | — | — | |
| ConocoPhillips | 7.61 | 4.57 | 8.66 | — | — | |
| Exxon Mobil Corp. | 7.62 | 5.65 | 9.86 | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.17 | 5.60 | 10.13 | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 8.44 | 5.95 | 10.52 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 11,858,000,000 ÷ 332,481,908 = 35.67
3 Closing price as at the filing date of Valero Energy Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 139.78 ÷ 35.67 = 3.92
5 Click competitor name to see calculations.
The valuation metrics between 2019 and 2023 reveal a period of significant volatility in operating performance contrasted by a consistent upward trajectory in share price. The Price to Operating Profit (P/OP) ratio fluctuates sharply, reflecting the impact of erratic operating margins on the company's valuation multiples.
- Share Price Progression
- A sustained increase in share price is observed over the five-year period. The price rose from 71.72 US$ in 2019 to 139.78 US$ by the end of 2023. The most pronounced acceleration occurred between 2021 and 2022, where the price increased by approximately 54%.
- Operating Profit per Share Volatility
- Operating profit per share exhibited extreme variance. A contraction occurred in 2020, resulting in a loss of 3.86 US$ per share, which rendered the P/OP ratio inapplicable for that period. Following a partial recovery in 2021, a substantial surge was recorded in 2022, with operating profit per share peaking at 42.27 US$, before moderating to 35.67 US$ in 2023.
- P/OP Ratio Interpretation
- The P/OP ratio shifted from 7.65 in 2019 to a peak of 16.50 in 2021, indicating a higher valuation relative to operating earnings as profits struggled to recover from the 2020 downturn. However, a sharp compression of the multiple occurred in 2022 and 2023, with the ratio dropping to 3.13 and 3.92, respectively. This compression suggests that the growth in operating profits significantly outpaced the increase in share price during the final two years of the analyzed period, resulting in a more conservative valuation multiple.
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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 | — | — | |
| ConocoPhillips | 2.33 | 1.68 | 2.58 | — | — | |
| Exxon Mobil Corp. | 1.24 | 1.12 | 1.17 | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.41 | 1.24 | 1.48 | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.46 | 1.31 | 1.52 | — | — | |
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.
The evaluation of common stock valuation ratios reveals a period of relative stability in the Price to Sales (P/S) metric despite significant fluctuations in underlying revenue and share price between 2019 and 2023.
- Price to Sales (P/S) Trend Analysis
- The P/S ratio experienced a notable peak in 2020 at 0.48, followed by a normalization period from 2021 through 2023, during which the ratio fluctuated within a narrow range of 0.28 to 0.32. This suggests that the market valuation has remained consistently low relative to revenue generation after the volatility observed in 2020.
- Correlation Between Share Price and Sales per Share
- A steady upward trajectory in share price is evident, increasing from 71.72 in 2019 to 139.78 in 2023. This growth in market price was largely mirrored by an increase in sales per share, which rose from 264.63 in 2019 to a peak of 475.23 in 2022. The simultaneous growth in both metrics prevented a significant expansion of the P/S multiple.
- Impact of Revenue Volatility
- The temporary spike in the P/S ratio during 2020 is directly attributable to a sharp decline in sales per share to 158.88, while the share price remained relatively stable at 75.81. In subsequent years, specifically 2021 and 2022, the ratio compressed as sales per share recovered and grew aggressively, outstripping the pace of share price appreciation.
- Recent Valuation Patterns
- As of December 31, 2023, the P/S ratio stood at 0.32. This marginal increase from the 2022 level of 0.28 coincided with a slight contraction in sales per share to 435.41 and a continued increase in share price to 139.78, indicating a slight shift in valuation relative to current revenue levels.
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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 | — | — | |
| ConocoPhillips | 2.65 | 2.75 | 2.61 | — | — | |
| Exxon Mobil Corp. | 2.02 | 2.29 | 1.93 | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.00 | 2.21 | 2.00 | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.08 | 2.30 | 2.07 | — | — | |
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.
The financial trajectory from 2019 to 2023 reveals a period of expansion in market valuation relative to book value, followed by a corrective alignment in the final year. The Price to Book Value (P/BV) ratio exhibited a consistent upward trend for four consecutive years before declining in 2023.
- Share Price Performance
- A steady appreciation in share price is observed throughout the five-year period. The price increased from 71.72 US$ in 2019 to 139.78 US$ by the end of 2023. The most significant acceleration occurred between 2021 and 2022, where the share price rose by approximately 54%.
- Book Value per Share (BVPS) Trends
- The BVPS experienced a period of contraction between 2019 and 2021, falling from 53.26 US$ to 45.03 US$. However, a strong recovery followed, with BVPS increasing to 63.48 US$ in 2022 and further climbing to 79.24 US$ in 2023. This recovery indicates a substantial increase in the company's net asset value per share in the latter part of the period.
- Price to Book Value (P/BV) Analysis
- The P/BV ratio climbed from 1.35 in 2019 to a peak of 2.09 in 2022. This expansion was driven by the divergence between rising share prices and declining or stagnant book values from 2019 to 2021. In 2023, the ratio contracted to 1.76. This decrease resulted from the growth in BVPS outstripping the growth in the share price, suggesting that the market valuation became more closely aligned with the company's strengthened underlying book value.
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