Diamondback Energy, Inc.

DB:7DB Stock Report

Market Cap: €49.0b

Diamondback Energy Valuation

Is 7DB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7DB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7DB (€165.86) is trading below our estimate of fair value (€285.57)

Significantly Below Fair Value: 7DB is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7DB?

Key metric: As 7DB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7DB. This is calculated by dividing 7DB's market cap by their current earnings.
What is 7DB's PE Ratio?
PE Ratio16.2x
EarningsUS$3.20b
Market CapUS$51.85b

Price to Earnings Ratio vs Peers

How does 7DB's PE Ratio compare to its peers?

The above table shows the PE ratio for 7DB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.8x
HES Hess
17.1x16.1%US$45.2b
DR0 Deutsche Rohstoff
2.8x-8.9%€164.7m
CNQ Canadian Natural Resources
13.2x2.8%CA$100.3b
TPL Texas Pacific Land
81.9xn/aUS$36.8b
7DB Diamondback Energy
16.2x11.1%€51.9b

Price-To-Earnings vs Peers: 7DB is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (28.8x).

Price to Earnings Ratio vs Industry

How does 7DB's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7DB 16.2xIndustry Avg. 8.7xNo. of Companies16PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7DB is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the European Oil and Gas industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is 7DB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7DB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.2x
Fair PE Ratio27.6x

Price-To-Earnings vs Fair Ratio: 7DB is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7DB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€165.86
€206.62
+24.6%
8.4%€243.40€163.22n/a28
Nov ’25€162.04
€199.36
+23.0%
8.1%€235.31€162.41n/a29
Oct ’25€154.06
€196.87
+27.8%
11.6%€258.37€139.12n/a27
Sep ’25€177.12
€201.18
+13.6%
11.9%€256.23€137.97n/a27
Aug ’25€182.46
€206.30
+13.1%
12.5%€263.58€141.93n/a27
Jul ’25€186.40
€207.90
+11.5%
12.0%€246.25€144.19n/a27
Jun ’25€182.72
€204.75
+12.1%
12.1%€242.43€141.96n/a25
May ’25€191.40
€205.44
+7.3%
13.0%€245.98€144.04n/a26
Apr ’25€180.82
€186.89
+3.4%
10.2%€231.75€142.76n/a25
Mar ’25€168.34
€178.60
+6.1%
10.5%€231.30€142.48n/a26
Feb ’25€141.86
€164.45
+15.9%
10.9%€221.35€118.98n/a30
Jan ’25€139.78
€164.16
+17.4%
9.7%€203.69€133.08n/a30
Dec ’24€142.56
€170.54
+19.6%
11.2%€216.08€135.17€165.8630
Nov ’24€152.30
€171.70
+12.7%
10.5%€212.42€136.89€162.0429
Oct ’24€147.98
€166.94
+12.8%
9.7%€211.32€138.03€154.0629
Sep ’24€139.40
€160.99
+15.5%
10.0%€206.08€129.96€177.1228
Aug ’24€134.26
€151.24
+12.6%
10.6%€188.47€112.90€182.4628
Jul ’24€120.60
€154.18
+27.8%
10.1%€189.69€113.63€186.4028
Jun ’24€118.04
€158.42
+34.2%
10.5%€192.94€115.58€182.7228
May ’24€128.60
€157.22
+22.3%
9.9%€187.85€114.35€191.4029
Apr ’24€123.18
€158.59
+28.7%
11.4%€198.97€115.53€180.8230
Mar ’24€132.08
€164.95
+24.9%
11.3%€200.71€118.18€168.3430
Feb ’24€132.38
€160.61
+21.3%
11.9%€194.80€105.59€141.8630
Jan ’24€127.16
€169.28
+33.1%
12.2%€216.80€109.34€139.7829
Dec ’23€141.44
€174.11
+23.1%
12.0%€220.75€111.34€142.5630

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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