Sunoco LP (SUN) is undervalued and Valero Energy Corp (VLO) is overvalued.
Against our estimates of intrinsic value, SUN trades at the wider discount: a margin of safety of +21%, against -128% for VLO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.6% (average of 3 methods) values the shares at $92.66; the price of $73.12 is 21% below that value, and 85% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $165.56; the price of $377.14 is 128% above that value, and 77% of that value comes from beyond year five.
Leak Score 64/100 on 10 of 12 signals
| Metric | SUN | VLO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $73.12 | $377.14 |
| Intrinsic value | $92.66 | $165.56 |
| Margin of safety | +21% | -128% |
| Leak Score | 56/100 (2/12) | 64/100 (10/12) |
| Market cap | $15.0B | $108.6B |
| Revenue growth, 5 years | 18.7% | 13.6% |
| Operating margin | 4.9% | 7.6% |
| Net margin | 1.6% | 5.2% |
| Return on equity | 14.5% | 29.3% |
| Debt to equity | 1.78 | 0.45 |
| P/E | 16.0x | 15.6x |
| Forward P/E | 8.0x | 9.8x |
| P/B | 1.5x | 4.3x |
| Dividend yield | 5.5% | 1.3% |