Valero Energy Price To Earning vs. Profit Margin
| VLO Stock | MXN 2,737 72.74 2.73% |
For Valero Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Valero Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Valero Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Valero Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Valero Energy over time as well as its relative position and ranking within its peers.
Valero |
Valero Energy Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Valero Energy's current stock value. Our valuation model uses many indicators to compare Valero Energy value to that of its competitors to determine the firm's financial worth. Valero Energy is rated below average in price to earning category among its peers. It also is rated below average in profit margin category among its peers . The ratio of Price To Earning to Profit Margin for Valero Energy is about 4,050 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Valero Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Valero Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Valero Profit Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Valero Energy |
| = | 264.87 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Valero Energy |
| = | 0.07 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Valero Profit Margin Comparison
Valero Energy is rated fifth in profit margin category among its peers.
Valero Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Valero Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Valero Energy will eventually generate negative long term returns. The profitability progress is the general direction of Valero Energy's change in net profit over the period of time. It can combine multiple indicators of Valero Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company in the United States, Canada, the United Kingdom, Ireland, and internationally. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas. VALERO ENERGY operates under Oil Gas Refining Marketing classification in Mexico and is traded on Mexico Stock Exchange. It employs 10261 people.
Valero Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Valero Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Valero Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Valero Energy's important profitability drivers and their relationship over time.
Use Valero Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Valero Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Valero Energy will appreciate offsetting losses from the drop in the long position's value.Valero Energy Pair Trading
Valero Energy Pair Trading Analysis
The ability to find closely correlated positions to Valero Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Valero Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Valero Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Valero Energy to buy it.
The correlation of Valero Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Valero Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Valero Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Valero Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Valero Energy position
In addition to having Valero Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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Additional Tools for Valero Stock Analysis
When running Valero Energy's price analysis, check to measure Valero Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Valero Energy is operating at the current time. Most of Valero Energy's value examination focuses on studying past and present price action to predict the probability of Valero Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Valero Energy's price. Additionally, you may evaluate how the addition of Valero Energy to your portfolios can decrease your overall portfolio volatility.