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STOCK COMPARISON

Shell vs Valero Energy: Fair Value & Quality

Both stocks run through our valuation models. Here is how Shell (SHEL) and Valero Energy (VLO) compare, as of Oct 30, 2026.

As of Oct 30, 2026, Fair Value Calculator sees Shell as the less overvalued of the two: Shell trades at £40.37 versus a fair value of £33.22 (−17.7%), while Valero Energy trades at $400 versus $131 (−67.1%).
Shell
SHEL.LSE · GBP · Energy
−17.7%
upside to fair value
overvalued
Price£40.37
Fair Value£33.22
Quality63/100
Fair ValueQualityUptrend
Valero Energy
VLO · USD · Energy
−67.1%
upside to fair value
overvalued
Price$400
Fair Value$131
Quality68/100
Fair ValueQualityUptrend
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

ShellValero Energy
Valuation
9.6×P/E (TTM)10.0×
9.3×Forward P/E (FY2027)7.5×
4.9×Median P/E at FY-end (9 FY, ex one-offs where documented)13.1×
0.95×P/S (TTM)0.80×
1.75×P/B4.95×
4.7×EV/EBITDA5.9×
1.75×PEG1.63×
−17.7%Fair value upside−67.1%
2.7%Dividend yield1.2%
£1.08Dividend per share$4.73
Profitability
18.8%Operating margin19.7%
17.4%Return on equity27.6%
4.9%Return on assets4.1%
Growth
36.2%Revenue growth (YoY)51.9%
n/aAvg. growth/yr (3Y)-11.4%
n/aAvg. growth/yr (5Y)13.6%
−20.3%Value creation/yr+9.5%
Balance & size
6.6×Interest coverage (EBIT/interest)7.8×
0.24×Debt / equity0.41×
$305BMarket cap$118B
mixedGrowth qualitymixed
Shell, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 4.9. Valero Energy, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 13.1.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Shell leads: 7 to 5 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Shell Valero Energy
ProfitabilityHow much profit the company makes from its sales and capital
39
43
Quality GrowthAre margins and returns getting better?
41
36
CashflowDo the profits arrive as real cash?
58
61
Financial strengthDebt, balance sheet and risk of trouble
60
63
InvestmentDoes it invest with discipline instead of growing at any price?
91
100
Low VolatilityHow calm the share price moves, does not count
91
71
Price momentumPrice momentum of the last 3 to 12 months, does not count
71
96
Near the 52-week highDistance to the 52-week high, does not count
93
90
New sharesBuys back shares or issues new ones?
100
100

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyShellPrice £40.37Valero EnergyPrice $400
DCF Models−7.9%close to the price£37.17−32.8%below the price$268
Earnings-Based−42.4%below the price£23.27−71.9%below the price$112
Dividend Discount−70.5%below the price£11.91−75.8%below the price$96.73
Multiples−18.4%below the price£32.95−66.3%below the price$135
Asset-Based−67.8%below the price£12.99−86.4%below the price$54.32
Growth DCF+3.7%close to the price£41.85−9.0%close to the price$364
Economic Profit−39.3%below the price£24.50−67.4%below the price$130
Growth Earnings−36.1%below the price£25.79−69.2%below the price$123
Matching families8 of 8
Minimum−70.5%below the price£11.91−86.4%below the price$54.32
Maximum+3.7%close to the price£41.85−9.0%close to the price$364
Median−37.7%below the price£25.14−68.3%below the price$127
Geometric mean−40.1%below the price£24.17−65.7%below the price$137
Ahead family by family8 of 80 of 8

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 8 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Shell is ahead in 8 of 8 shared families, Valero Energy in none.

Shell: 19 of 24 models see the stock below the current price.

Valero Energy: 24 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Shell
Price £40.37
Fair Value £33.22
Bear £22.17Bull £41.91
Valero Energy
Price $400
Fair Value $131
Bear $92.38Bull $170

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Shell · Energy

Quality score63 · Top 25%
Fair value upside−17.7% · below median

Valero Energy · Energy

Quality score68 · Top 25%
Fair value upside−67.1% · bottom 25%

Bottom line

As of Oct 30, 2026, Fair Value Calculator sees Shell as the less overvalued of the two: Shell trades at £40.37 versus a fair value of £33.22 (−17.7%), while Valero Energy trades at $400 versus $131 (−67.1%).

Valero Energy has the higher quality score (68/100).

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.