Valero EnergyMEX:VLO +8.50%59 Interest Coverage is 12.36 as of Mar. 2026, which is 54% above its 10-year median of 8.05. GuruFocus rates MEX:VLO with a GF Score™ of 59/100 and a GF Value™ of MXN2,536.21 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 728 Oil & Gas companies, Valero Energy ranks better than 64.01% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Valero Energy's
Operating Income
for the
three
months ended in Mar. 2026 was MXN31,215 Mil. Valero Energy's Interest Expense for the
three
months ended in Mar. 2026 was MXN-2,525 Mil.
Valero Energy's interest coverage for the quarter that ended in Mar. 2026 was 12.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Valero Energy's Interest Coverage or its related term are showing as below:
MEX:VLO'
s Interest Coverage Range Over the Past 10 Years
Min: 3.53 Med: 8.05 Max: 28.03
Current: 10.4
MEX:VLO's Interest Coverage is ranked better than 64.01% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs MEX:VLO: 10.40
Valero Energy (MEX:VLO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Valero Energy Interest Coverage Related Terms
Valero Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Valero Energy's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:VLO vs MPC, PSX, DINO: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, Valero Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Valero Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Valero Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Valero Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Valero Energy (MEX:VLO) has a Interest Coverage of 12.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Valero Energy and its competitors. This is 54% above median its historical median of 8.05. Over the past decade, Valero Energy's Interest Coverage has ranged from 3.53 to 28.03. According to the industry distribution chart, Valero Energy ranks #262 out of 728 companies in the Oil & Gas industry, placing it in the top 36%.
Is Valero Energy's Interest Coverage too high?
Valero Energy's current Interest Coverage of 12.36 is 54% above median its 10-year median of 8.05. Over the past 10 years, this metric has ranged from a low of 3.53 to a high of 28.03. The Oil & Gas industry median Interest Coverage is 5.84. Valero Energy's value of 12.36 is 111.6% above this industry median. Based on the distribution chart, Valero Energy ranks #262 out of 728 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Valero Energy has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Valero Energy's Interest Coverage compare to MPC and PSX?
According to the Oil & Gas industry distribution chart, Valero Energy ranks #262 out of 728 companies for Interest Coverage. This puts Valero Energy in the upper half of its industry. The industry median Interest Coverage is 5.84. Valero Energy's value of 12.36 is 111.6% above this benchmark. Historically, Valero Energy's own Interest Coverage has ranged from 3.53 to 28.03 over the past decade. While the company's 10-year median is 8.05 vs. the industry median of 5.84, Valero Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Valero Energy's current Interest Coverage of 12.36 is 111.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Valero Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valero Energy's current Interest Coverage is 12.36, which is 54% above median its own 10-year median of 8.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valero Energy stock overvalued right now?
Based on GuruFocus' analysis, Valero Energy (MEX:VLO) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,536.21, compared to a current price of MXN4,436.49 — trading 74.9% above its estimated fair value. The current Interest Coverage is 12.36, which is 54% above median its 10-year median of 8.05 and 111.6% above the Oil & Gas industry median of 5.84. Valero Energy's overall GF Score™ is 59/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Valero Energy (MEX:VLO), the current Interest Coverage is 12.36 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Valero Energy (MEX:VLO) Overvalued in 2026?
Based on GuruFocus' analysis, Valero Energy stock appears to be overvalued.
The current stock price of MXN4,436.49 is trading 74.9% above its estimated GF Value™ of MXN2,536.21.
GuruFocus considers Valero Energy to be Significantly Overvalued.
Key valuation signals for MEX:VLO:
Interest Coverage: 12.36 (54% above median its 10-year median of 8.05)
GF Value™: MXN2,536.21 vs. price of MXN4,436.49 (74.9% above fair value)
Industry Position: 111.6% above the Oil & Gas median (#262 of 728)
No single metric tells the full story. See the MEX:VLO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which can produce 1.2 billion gallons per year of renewable diesel.
59GF Score
Get the complete analysis for MEX:VLO
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:VLO has been successfully added to your 
