The YouTuber suggests Valero is undervalued, with a fair value of $230 per share compared to its current price of $150, based on discounted cash flow. This assessment is supported by its price-to-earnings multiple being at the lower end of its historical range and Enterprise Value to EBITDA also indicating undervaluation based on 5 and 10-year averages. The company also offers a reliable 3% dividend yield.
“using kind of free cash flow which for me many times is my favorite valuation method well we could see that the fair value is at about 230 per share while the stocks trading slightly over 150 per share so Valero looks like an interesting one” — ▶ 14:50