Valero Energy Multiplies Sevenfold Over Five Years

Valero Energy generated a return of roughly 7x over the past five years. Supportive refining margins and tight product markets continue to back cash flow expectations for the company.

The company trades on a price-to-earnings ratio of about 14.8x. That multiple sits above the broader oil and gas industry average of roughly 12.9x and above its peer group average of about 10.9x.

Any easing in crack spreads or lower refinery utilization would present direct risks to its valuation. Meanwhile, capital returns remain a focus after a 6% increase in the quarterly cash dividend alongside ongoing share buybacks.