Devon Energy Corporation

DB:DY6 Stock Report

Market Cap: €24.4b

Devon Energy Valuation

Is DY6 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 DY6 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DY6 (€36.76) is trading below our estimate of fair value (€71.96)

Significantly Below Fair Value: DY6 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DY6?

Key metric: As DY6 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DY6. This is calculated by dividing DY6's market cap by their current earnings.
What is DY6's PE Ratio?
PE Ratio7.6x
EarningsUS$3.40b
Market CapUS$25.42b

Price to Earnings Ratio vs Peers

How does DY6's PE Ratio compare to its peers?

The above table shows the PE ratio for DY6 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.8x
DR0 Deutsche Rohstoff
2.9x-8.9%€168.6m
EQT EQT
87.2x54.9%US$28.0b
CTRA Coterra Energy
16.5x29.8%US$20.2b
TPL Texas Pacific Land
88.6xn/aUS$34.8b
DY6 Devon Energy
7.6x-4.2%€25.4b

Price-To-Earnings vs Peers: DY6 is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (48.8x).

Price to Earnings Ratio vs Industry

How does DY6's PE Ratio compare vs other companies in the European Oil and Gas Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DY6 7.6xIndustry Avg. 8.7xNo. of Companies18PE0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DY6 is good value based on its Price-To-Earnings Ratio (7.6x) compared to the European Oil and Gas industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is DY6'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.

DY6 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: DY6 is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

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 DY6 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€36.76
€49.41
+34.4%
11.3%€61.46€41.29n/a28
Nov ’25€35.43
€47.98
+35.4%
10.2%€59.18€39.76n/a28
Oct ’25€35.11
€48.67
+38.7%
9.5%€57.82€38.85n/a27
Sep ’25€40.86
€51.11
+25.1%
9.5%€58.48€38.69n/a27
Aug ’25€43.36
€53.65
+23.7%
9.3%€62.67€39.63n/a27
Jul ’25€44.27
€55.13
+24.6%
8.7%€63.67€44.94n/a28
Jun ’25€44.17
€53.97
+22.2%
8.9%€62.68€44.25n/a27
May ’25€49.22
€54.12
+9.9%
10.3%€64.64€44.97n/a29
Apr ’25€46.30
€50.48
+9.0%
10.6%€64.24€43.76n/a28
Mar ’25€40.64
€49.04
+20.7%
12.6%€69.21€42.45n/a28
Feb ’25€38.90
€49.28
+26.7%
13.0%€69.09€42.38n/a28
Jan ’25€41.24
€50.37
+22.1%
11.9%€70.15€42.82n/a28
Dec ’24€41.16
€51.60
+25.4%
13.0%€70.18€42.84n/a28
Nov ’24€43.88
€55.43
+26.3%
12.9%€74.65€44.41€35.4328
Oct ’24€45.98
€57.43
+24.9%
12.7%€75.20€47.60€35.1128
Sep ’24€47.06
€55.88
+18.7%
13.1%€73.34€46.42€40.8627
Aug ’24€48.86
€54.09
+10.7%
15.6%€69.67€34.38€43.3627
Jul ’24€44.80
€56.41
+25.9%
16.2%€74.23€34.82€44.2727
Jun ’24€43.16
€58.65
+35.9%
17.1%€81.09€35.42€44.1727
May ’24€47.38
€59.79
+26.2%
16.0%€78.78€40.75€49.2228
Apr ’24€45.46
€61.38
+35.0%
16.3%€80.26€41.51€46.3028
Mar ’24€50.40
€67.16
+33.3%
14.0%€83.90€42.42€40.6428
Feb ’24€56.02
€69.50
+24.1%
13.6%€88.31€41.40€38.9028
Jan ’24€57.18
€74.16
+29.7%
13.2%€92.37€42.42€41.2427
Dec ’23€65.88
€76.96
+16.8%
14.5%€99.02€44.22€41.1626
Nov ’23€79.11
€79.87
+1.0%
16.2%€109.38€46.16€43.8826

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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