Using the industry peer median P/E multiple (trailing + forward), Valero Energy Corporation (VLO) has a fair value of $187.16 based on 5 comparable companies in the Oil & Gas Refining & Marketing industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Valero Energy CorporationVLO | 76,663 | 32.8x | 16.5x |
| EOG Resources, Inc.EOG | 80,098 | 16.2x | 14.3x |
| SLB N.V.SLB | 78,737 | 22.4x | 18.7x |
| Kinder Morgan, Inc.KMI | 76,211 | 25.0x | 24.7x |
| Phillips 66PSX | 74,282 | 17.2x | 15.0x |
| Marathon Petroleum CorporationMPC | 73,317 | 18.7x | 15.4x |
| Industry Median | 18.7x | 15.4x | |
| (*) Profit after tax | 2,348 | 4,656 | |
| Equity Value | 44,014 | 71,648 | |
| (/) Outstanding shares | 309 | 309 | |
| Fair Price | $142 | $232 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.