I probably should have written about this earlier as I picked up a position in Valero Energy (VLO) a few weeks ago around the $18-$19 range. The valuations presented here are a bit crude (pardon the pun), but in my opinion, an equity investor ought to be more interested in being directionally correct than being exact when modeling. In the end, all we’re looking for is satisfactory margin of safety. On a final note, I have to give credit to Chad Brand at Peridot Capitalist for getting me interested in this one.

What is Valero?