Diamondback Energy Valuation
Is FANG * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
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 FANG * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FANG * (MX$3589) is trading below our estimate of fair value (MX$4696.43)
Significantly Below Fair Value: FANG * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FANG *?
Key metric: As FANG * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is FANG *'s PE Ratio? | |
|---|---|
| PE Ratio | 16x |
| Earnings | US$3.20b |
| Market Cap | US$51.38b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 7.1x |
| Enterprise Value/EBITDA | 9.6x |
| PEG Ratio | 1.5x |
Price to Earnings Ratio vs Peers
How does FANG *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12.6x | ||
VISTA A Vista Energy. de | 9.9x | 15.0% | Mex$104.0b |
HES Hess | 17.1x | 16.1% | US$44.9b |
CNQ Canadian Natural Resources | 13.1x | 2.8% | CA$98.6b |
EOG EOG Resources | 10.5x | -2.7% | US$74.5b |
FANG * Diamondback Energy | 16x | 11.1% | Mex$51.4b |
Price-To-Earnings vs Peers: FANG * is expensive based on its Price-To-Earnings Ratio (16x) compared to the peer average (12.5x).
Price to Earnings Ratio vs Industry
How does FANG *'s PE Ratio compare vs other companies in the Global Oil and Gas Industry?
| 30 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 30 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: FANG * is expensive based on its Price-To-Earnings Ratio (16x) compared to the Global Oil and Gas industry average (10.7x).
Price to Earnings Ratio vs Fair Ratio
What is FANG *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FANG *'s Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$4,473.08 0% | 8.4% | Mex$5,269.40 | Mex$3,533.60 | n/a | 28 |
| Nov ’25 | n/a | Mex$4,380.44 0% | 8.1% | Mex$5,170.53 | Mex$3,568.68 | n/a | 29 |
| Oct ’25 | Mex$3,318.32 | Mex$4,274.22 +28.8% | 11.6% | Mex$5,609.38 | Mex$3,020.43 | n/a | 27 |
| Sep ’25 | Mex$3,787.79 | Mex$4,349.17 +14.8% | 11.9% | Mex$5,539.22 | Mex$2,982.66 | n/a | 27 |
| Aug ’25 | n/a | Mex$4,068.54 0% | 12.5% | Mex$5,198.05 | Mex$2,798.95 | n/a | 27 |
| Jul ’25 | n/a | Mex$4,075.10 0% | 12.0% | Mex$4,826.87 | Mex$2,826.38 | n/a | 27 |
| Jun ’25 | n/a | Mex$3,768.46 0% | 12.1% | Mex$4,461.98 | Mex$2,612.72 | n/a | 25 |
| May ’25 | n/a | Mex$3,738.06 0% | 13.0% | Mex$4,475.68 | Mex$2,620.74 | n/a | 26 |
| Apr ’25 | n/a | Mex$3,351.47 0% | 10.2% | Mex$4,156.05 | Mex$2,560.13 | n/a | 25 |
| Mar ’25 | Mex$3,015.09 | Mex$3,290.95 +9.1% | 10.5% | Mex$4,262.00 | Mex$2,625.39 | n/a | 26 |
| Feb ’25 | Mex$2,619.96 | Mex$3,059.40 +16.8% | 10.9% | Mex$4,118.09 | Mex$2,213.47 | n/a | 30 |
| Jan ’25 | n/a | Mex$3,077.99 0% | 9.7% | Mex$3,819.20 | Mex$2,495.21 | n/a | 30 |
| Dec ’24 | n/a | Mex$3,189.47 0% | 11.2% | Mex$4,041.30 | Mex$2,527.96 | n/a | 30 |
| Nov ’24 | n/a | Mex$3,315.82 0% | 10.5% | Mex$4,102.34 | Mex$2,643.73 | n/a | 29 |
| Oct ’24 | Mex$2,560.00 | Mex$3,101.32 +21.1% | 9.7% | Mex$3,925.74 | Mex$2,564.11 | Mex$3,318.32 | 29 |
| Sep ’24 | n/a | Mex$2,964.12 0% | 10.0% | Mex$3,794.27 | Mex$2,392.78 | Mex$3,787.79 | 28 |
| Aug ’24 | n/a | Mex$2,800.78 0% | 10.6% | Mex$3,490.29 | Mex$2,090.80 | n/a | 28 |
| Jul ’24 | Mex$2,230.00 | Mex$2,880.36 +29.2% | 10.1% | Mex$3,543.74 | Mex$2,122.82 | n/a | 28 |
| Jun ’24 | Mex$2,260.00 | Mex$3,001.54 +32.8% | 10.5% | Mex$3,655.58 | Mex$2,189.82 | n/a | 28 |
| May ’24 | n/a | Mex$3,114.86 0% | 9.9% | Mex$3,721.84 | Mex$2,265.47 | n/a | 29 |
| Apr ’24 | Mex$2,343.00 | Mex$3,129.42 +33.6% | 11.4% | Mex$3,926.09 | Mex$2,279.67 | n/a | 30 |
| Mar ’24 | n/a | Mex$3,183.70 0% | 11.3% | Mex$3,874.02 | Mex$2,280.97 | Mex$3,015.09 | 30 |
| Feb ’24 | Mex$2,660.00 | Mex$3,285.37 +23.5% | 11.9% | Mex$3,984.89 | Mex$2,160.04 | Mex$2,619.96 | 30 |
| Jan ’24 | n/a | Mex$3,490.01 0% | 12.2% | Mex$4,469.73 | Mex$2,254.30 | n/a | 29 |
| Dec ’23 | Mex$2,990.00 | Mex$3,499.22 +17.0% | 12.0% | Mex$4,436.72 | Mex$2,237.65 | n/a | 30 |
| Nov ’23 | Mex$3,090.32 | Mex$3,422.99 +10.8% | 12.0% | Mex$4,535.58 | Mex$2,464.99 | n/a | 31 |
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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