Viper Energy (VNOM): Exploring Valuation After New Buy Rating and Growth Strategy Focus

If you hold shares in Viper Energy (VNOM) or are considering an investment, you have likely noticed the recent wave of excitement. The catalyst is that William Blair has initiated analyst coverage with a Buy rating, highlighting Viper Energy’s focus on growth. This includes strategies such as ramping up operations organically, pursuing acquisitions, or buying back shares. Additionally, the analyst noted that significant moves like potential asset sales could position Viper favorably compared to its peers, which has attracted market attention.

This show of confidence came during a year when Viper Energy’s stock has experienced considerable volatility. After a slow start to the year, momentum picked up recently, with a 5% increase over the past week and a 2% gain this month, even though returns for the year remain down about 22%. The combination of a new analyst perspective and ongoing speculation about potential deals has begun to shift investor perception of the risk and reward involved.

After a year of significant fluctuations and renewed optimism, the key question remains whether Viper Energy is trading at a discount, potentially providing an opportunity for buyers, or if the market has already accounted for much of its anticipated growth.

Most Popular Narrative: 27.2% Undervalued

According to the community narrative, Viper Energy is trading well below its estimated fair value, with significant upside potential outlined by analysts. This suggests the wider market may not yet reflect all the optimism and catalysts that analysts see ahead for the company.

“The combination of organic production growth, especially from Diamondback-operated assets (projected to deliver 15% higher oil production per share in 2026 vs. 2025), and consistent share repurchases at currently depressed valuations, creates a powerful catalyst for per-share earnings growth and higher total shareholder return.”

How will Viper Energy fuel its next stage of growth? One key lever that insiders are betting on could completely reshape future earnings and valuations. However, the full story is a calculated mix of ambition and bold numerical assumptions. Curious which growth drivers analysts are counting on for that elevated price target? There is more beneath the surface of this valuation than meets the eye.

Result: Fair Value of $53.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifting conditions in the Permian Basin or difficulties in integrating recent acquisitions could quickly dampen Viper Energy’s optimistic outlook.

Find out about the key risks to this Viper Energy narrative.

Another View: Is the Discount Real?

While some analysts see Viper Energy as deeply undervalued when compared with our DCF model, looking at traditional valuation ratios compared to the broader industry paints a less optimistic picture. Which method should investors trust most?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Viper Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Viper Energy Narrative

If you would rather draw your own conclusions or dig deeper into the numbers, you can generate a personalized view of the story in just a few minutes. Do it your way

A great starting point for your Viper Energy research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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