VLONEUTRAL

EV/EBITDA

10.4x

Updated 56h ago

Sector Performance

32th percentile

VLO

10.4x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA measures a company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization — a lower multiple often suggests cheaper valuation.

VLO's current 10.4x sits below the sector median of 13.4x, placing it in the 32nd percentile among peers, meaning it is cheaper than about two-thirds of them. The metric has been increasing over the last eight quarters, with a year-over-year rise of 21.2% and a quarter-over-quarter increase of 3.8%. A below-median level combined with an upward trend implies the stock's valuation is compressing toward the sector average, which could reduce the margin of safety for value investors while still offering a discount relative to peers. This mixed picture — cheap but getting less so — supports the overall NEUTRAL verdict, as the metric neither signals a clear bargain nor an overvaluation that would warrant a bearish stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about VLO?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are VLO's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.