Where Does Valero’s Beta Stand Compared to Peers?



Valero’s beta

In this part, we’ll compare Valero Energy’s (VLO) beta with its peers’ betas and its past average. We have considered the 90-day beta, which depicts how much a stock moves for a given move in the market (SPY) daily for 90 days. Similarly, the beta for the last five years has been considered for the past average.

Valero’s beta stood at 1.5 in the past 90 days, above its five-year average of 1.4. VLO’s 90-day beta was the second highest compared to peers Marathon Petroleum (MPC), Tesoro (TSO), and Phillips 66 (PSX). On the other hand, Phillips 66 had the lowest 90-day beta of 1.1.

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Betas of peers

MPC and TSO had 90-day betas standing of 1.9 and 1.4, respectively. While VLO and MPC’s 90-day betas stood above their five-year average betas, TSO and PSX’s 90-day betas stood below average. For exposure to refining sector stocks, investors can consider the iShares US Energy ETF (IYE). The ETF has ~7% exposure to the sector.


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