Question 1

What is Valero Energy Corporation's WACC?

Accepted Answer

Valero Energy Corporation (VLO) has a Weighted Average Cost of Capital (WACC) of 7.25%. This is calculated using a Cost of Equity of 7.73% (via CAPM with a beta of 0.71) and a pre-tax Cost of Debt of 5.31%, with an equity weight of 86.47% in the capital structure.

Question 2

Is Valero Energy Corporation's WACC high or low?

Accepted Answer

Valero Energy Corporation's WACC of 7.25% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Valero Energy Corporation's WACC calculated?

Accepted Answer

Valero Energy Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.73% is derived from the CAPM model using a beta of 0.71. The pre-tax Cost of Debt (Rd) is 5.31%. The capital structure is 86.47% equity and 13.53% debt.

Valero Energy Corporation (VLO) — WACC 分析

WACC 构成

解读

Valero Energy Corporation（VLO）WACC：7.25%

WACC计算器

Valero Energy Corporation（VLO） WACC 解读

VLO 公司分析

VLO DCF 估值

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