VLO: Valero Energy Corp. Message Board

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Gold/Mining/Energy : VLO: Valero Energy Corp.

VLO 181.78

+3.4%

3:59 PM EST

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To: Dennis Roth who wrote (44)	11/1/2005 11:29:54 AM
From: hubris33	Read Replies (1) of 299

So what PE do you see the market giving refiners in the long run? Way back when (a couple of years ago) in the middle of the down cycle, a PE of 8 was considered fair. That PE applied to the GS estimate (12.51) puts VLO over-priced here (8 x 12.51 = 100.08). However, if one thinks 10, 11, 12 or 13 is an appropriate number VLO is good for at least a 20% pop. Next quarter results should include the Premcor addition fully, without right-offs. THEN we should see some improved economies of scale. A well run oil company, that keeps getting better. H3

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