Diamondback Energy, Inc.

NasdaqGS:FANG Stock Report

Market Cap: US$52.6b

Diamondback Energy Valuation

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

Valuation Score

3/6

Valuation 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.

Discounted Cash Flow
Simply Wall St
US$290.78
Fair Value
38.0% undervalued intrinsic discount
31
Number of Analysts

Below Fair Value: FANG ($180.18) is trading below our estimate of fair value ($290.78)

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.

The above table shows the Price to Earnings ratio for FANG. This is calculated by dividing FANG's market cap by their current earnings.
What is FANG's PE Ratio?
PE Ratio16.4x
EarningsUS$3.20b
Market CapUS$52.61b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FANG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27x
HES Hess
17.6x17.0%US$46.5b
EOG EOG Resources
10.7x-4.4%US$76.5b
TPL Texas Pacific Land
72.3xn/aUS$32.5b
DVN Devon Energy
7.3x-3.2%US$24.9b
FANG Diamondback Energy
16.4x6.6%US$52.6b

Price-To-Earnings vs Peers: FANG is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (27x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
FANG 16.4xIndustry Avg. 12.1xNo. of Companies19PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FANG is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the US Oil and Gas industry average (12.1x).

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.

FANG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.4x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: FANG is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

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 FANG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$180.18
US$212.77
+18.1%
8.5%US$255.00US$171.00n/a31
Jan ’26US$163.83
US$215.17
+31.3%
7.8%US$255.00US$171.00n/a29
Dec ’25US$177.59
US$216.46
+21.9%
8.4%US$255.00US$171.00n/a28
Nov ’25US$175.81
US$216.03
+22.9%
8.1%US$255.00US$176.00n/a29
Oct ’25US$177.52
US$217.93
+22.8%
11.6%US$286.00US$154.00n/a27
Sep ’25US$195.11
US$224.56
+15.1%
11.9%US$286.00US$154.00n/a27
Aug ’25US$198.22
US$223.85
+12.9%
12.5%US$286.00US$154.00n/a27
Jul ’25US$203.71
US$222.04
+9.0%
12.0%US$263.00US$154.00n/a27
Jun ’25US$199.26
US$222.12
+11.5%
12.1%US$263.00US$154.00n/a25
May ’25US$196.01
US$219.66
+12.1%
13.0%US$263.00US$154.00n/a26
Apr ’25US$199.45
US$201.60
+1.1%
10.2%US$250.00US$154.00n/a25
Mar ’25US$185.17
US$193.04
+4.3%
10.5%US$250.00US$154.00n/a26
Feb ’25US$152.72
US$178.30
+16.7%
10.9%US$240.00US$129.00n/a30
Jan ’25US$155.08
US$181.33
+16.9%
9.7%US$225.00US$147.00US$163.8330
Dec ’24US$154.27
US$185.47
+20.2%
11.2%US$235.00US$147.00US$177.5930
Nov ’24US$159.41
US$181.86
+14.1%
10.5%US$225.00US$145.00US$175.8129
Oct ’24US$154.88
US$175.38
+13.2%
9.7%US$222.00US$145.00US$177.5229
Sep ’24US$154.66
US$173.43
+12.1%
10.0%US$222.00US$140.00US$195.1128
Aug ’24US$147.88
US$166.11
+12.3%
10.6%US$207.00US$124.00US$198.2228
Jul ’24US$131.36
US$168.25
+28.1%
10.1%US$207.00US$124.00US$203.7128
Jun ’24US$128.10
US$169.96
+32.7%
10.5%US$207.00US$124.00US$199.2628
May ’24US$141.93
US$173.24
+22.1%
9.9%US$207.00US$126.00US$196.0129
Apr ’24US$135.17
US$172.97
+28.0%
11.4%US$217.00US$126.00US$199.4530
Mar ’24US$144.62
US$175.87
+21.6%
11.3%US$214.00US$126.00US$185.1730
Feb ’24US$143.35
US$176.43
+23.1%
11.9%US$214.00US$116.00US$152.7230
Jan ’24US$136.78
US$179.59
+31.3%
12.2%US$230.00US$116.00US$155.0829
Analyst Price Target
Consensus Narrative from 31 Analysts
US$212.77
Fair Value
15.3% undervalued intrinsic discount
31
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/19 03:33
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Diamondback Energy, Inc. is covered by 73 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jeanine WaiBarclays
Betty JiangBarclays
Jeanine WaiBarclays