Delek US Holdings, Inc. (DK) Stock Valuation — PE Analysis
Oil & Gas Refining & Marketing · NYSE
Current Price
$71.47
PE Ratio (TTM)
19.6x
Intrinsic Value
$82.47
+13.3% margin of safety
COMPETITIVE MOAT
↑Refining Asset Location Advantage
Delek's refineries are strategically located in regions with favorable crude oil access and strong demand for refined products. This geographic advantage can lead to lower transportation costs and better pricing power.
↑Logistics Infrastructure Integration
The company's integrated logistics assets, including pipelines and terminals, provide a competitive edge. This infrastructure supports efficient crude oil sourcing and product distribution, enhancing operational reliability.
↑Operational Flexibility and Throughput
Delek's refineries demonstrate operational flexibility, allowing them to process various crude slates and adapt to changing market conditions. This adaptability supports strong throughput and margin capture.
INVESTMENT RISKS
↓Dependence on Refining Margins
Delek's profitability is heavily reliant on refining margins, which can be influenced by numerous external factors. A sustained downturn in these margins could severely impact financial performance.
↓Competition from Larger Refiners
The company faces competition from larger, more diversified energy companies with greater scale and resources. This can limit pricing power and market share expansion opportunities.
↓Capital Intensity of Operations
Refining operations are capital-intensive, requiring ongoing investment in maintenance, upgrades, and compliance. Unexpected capital expenditures or delays in projects could strain financial resources.
Base case
DK base case PE valuation
At a current price of $71.47, the base case PE valuation puts DK fair value near $82.47 per share. That figure assumes 8.0% yearly earnings growth, a target PE multiple of 19.53x, and a 10% discount rate.
Intrinsic Value
$82.47
Margin of safety
+13.3%
Expected annual return
+2.9%
Base case assumptions: 8.0% annual earnings growth, 19.53x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DK PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Delek US Holdings, Inc. respond.
Open PE Calculator for DKCompany Overview
Delek US Holdings, Inc. is an integrated downstream energy corporation operating within the United States. Its operations are divided into three core segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other raw materials to produce a variety of petroleum-based goods, such as gasoline, diesel, aviation fuel, and asphalt. These products are distributed through both company-owned and third-party facilities. This segment maintains and runs four independent refineries situated in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, alongside three biodiesel production plants located in Crossett, Arkansas; Cleburne, Texas; and New Albany. The Logistics division focuses on the collection, transportation, and storage of crude oil, intermediate products, and refined petroleum. It also handles the marketing, distribution, transport, and storage of refined products for external clients. Its infrastructure includes approximately 400 miles of crude oil pipelines, around 450 miles of refined product pipelines, and a crude oil gathering network spanning roughly 900 miles. Additionally, it features associated crude oil storage tanks with a combined active capacity of about 10.2 million barrels, and it operates ten light product distribution terminals. Marketing of light products also occurs through external terminals. The Retail segment manages 248 convenience stores, which are either owned or leased, primarily concentrated in West Texas and New Mexico. These stores provide various types of gasoline and diesel under the DK or Alon brands, as well as an assortment of food items, services, tobacco products, alcoholic and non-alcoholic beverages, general merchandise, and money order services to the public. These retail outlets largely operate under the 7-Eleven, DK, or Alon brand names. Delek US Holdings, Inc. serves a broad customer base, including major oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation firms, the U.S. government, and independent retail fuel operators. The company was established in 2001, and its corporate headquarters are located in Brentwood, Tennessee.
Financial Metrics — DK PE Stock Valuation Data
PE Ratio (TTM)
19.6x
PEG Ratio
n/m
Earnings Yield
5.12%
ROE (TTM)
95.3%
Revenue/Share (TTM)
$196.63
Dividend Yield
1.43%
Debt/Equity
7.70x
Frequently Asked Questions
What is the PE ratio of DK?
The trailing twelve-month PE ratio of DK reflects how much investors pay per dollar of Delek US Holdings, Inc.'s earnings. This metric is most useful when compared to Oil & Gas Refining & Marketing peers and the company's own historical range.
Is DK overvalued based on PE ratio?
DK's PE of 19.6x combined with a PEG ratio of -0.01 provides a growth-adjusted perspective. DK has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Refining & Marketing, a DCF analysis may be more appropriate.
How do I value DK stock using PE ratio?
To value Delek US Holdings, Inc. using PE: (1) Compare the current PE (19.6x) against the Oil & Gas Refining & Marketing median to assess relative pricing, (2) check the PEG ratio (-0.01) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DK?
DK's PEG ratio is -0.01, calculated by dividing the PE ratio (19.6x) by the expected earnings growth rate. Because DK has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DK stock valuation?
PE ratio gives a quick relative read — how DK is priced versus Oil & Gas Refining & Marketing peers. DCF provides an absolute value based on projected free cash flows. For DK, with a strong ROE of 95.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DK DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value DK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.