Devon Energy Corporation

NYSE:DVN Stock Report

Market Cap: US$25.9b

Devon Energy Valuation

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

Below Fair Value: DVN ($38.47) is trading below our estimate of fair value ($77.6)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DVN. This is calculated by dividing DVN's market cap by their current earnings.
What is DVN's PE Ratio?
PE Ratio7.4x
EarningsUS$3.40b
Market CapUS$25.87b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.5x
TPL Texas Pacific Land
69.6xn/aUS$31.3b
CTRA Coterra Energy
15.2x29.8%US$18.7b
EQT EQT
81.1x53.4%US$25.6b
MRO Marathon Oil
12x-6.1%US$16.1b
DVN Devon Energy
7.4x-4.7%US$25.9b

Price-To-Earnings vs Peers: DVN is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (44.5x).

Price to Earnings Ratio vs Industry

How does DVN'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
DVN 7.4xIndustry Avg. 11.3xNo. of Companies15PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DVN is good value based on its Price-To-Earnings Ratio (7.4x) compared to the US Oil and Gas industry average (11.3x).

Price to Earnings Ratio vs Fair Ratio

What is DVN'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.

DVN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: DVN is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

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 DVN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$38.47
US$51.46
+33.8%
11.2%US$64.00US$43.00n/a28
Nov ’25US$38.32
US$51.88
+35.4%
10.2%US$64.00US$43.00n/a28
Oct ’25US$39.76
US$53.88
+35.5%
9.5%US$64.00US$43.00n/a27
Sep ’25US$44.78
US$56.81
+26.9%
9.5%US$65.00US$43.00n/a27
Aug ’25US$45.06
US$58.21
+29.2%
9.3%US$68.00US$43.00n/a27
Jul ’25US$47.73
US$58.88
+23.4%
8.7%US$68.00US$48.00n/a28
Jun ’25US$49.08
US$58.55
+19.3%
8.9%US$68.00US$48.00n/a27
May ’25US$50.40
US$57.77
+14.6%
10.3%US$69.00US$48.00n/a29
Apr ’25US$50.95
US$54.22
+6.4%
10.6%US$69.00US$47.00n/a28
Mar ’25US$44.39
US$53.14
+19.7%
12.6%US$75.00US$46.00n/a28
Feb ’25US$41.80
US$53.50
+28.0%
13.0%US$75.00US$46.00n/a28
Jan ’25US$45.30
US$55.29
+22.0%
11.9%US$77.00US$47.00n/a28
Dec ’24US$45.17
US$56.62
+25.4%
13.0%US$77.00US$47.00n/a28
Nov ’24US$46.21
US$58.66
+26.9%
12.9%US$79.00US$47.00US$38.3228
Oct ’24US$47.70
US$60.34
+26.5%
12.7%US$79.00US$50.00US$39.7628
Sep ’24US$52.92
US$60.20
+13.8%
13.1%US$79.00US$50.00US$44.7827
Aug ’24US$53.68
US$59.78
+11.4%
15.6%US$77.00US$38.00US$45.0627
Jul ’24US$48.34
US$61.56
+27.3%
16.2%US$81.00US$38.00US$47.7327
Jun ’24US$46.78
US$62.92
+34.5%
17.1%US$87.00US$38.00US$49.0827
May ’24US$53.24
US$66.03
+24.0%
16.0%US$87.00US$45.00US$50.4028
Apr ’24US$50.61
US$66.53
+31.5%
16.3%US$87.00US$45.00US$50.9528
Mar ’24US$54.74
US$71.25
+30.2%
14.0%US$89.00US$45.00US$44.3928
Feb ’24US$61.89
US$75.55
+22.1%
13.6%US$96.00US$45.00US$41.8028
Jan ’24US$61.51
US$78.68
+27.9%
13.2%US$98.00US$45.00US$45.3027
Dec ’23US$68.28
US$80.05
+17.2%
14.5%US$103.00US$46.00US$45.1726
Nov ’23US$77.30
US$79.59
+3.0%
16.2%US$109.00US$46.00US$46.2126

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

Discover undervalued companies

Hafnia

NOK 30.4b

Owns and operates oil product tankers in Bermuda.

HAFN

NOK 5.27

7D

-2.9%

1Y

-18.9%

Calfrac Well Services

CA$329.5m

Provides specialized oilfield services in Canada, the United States, and Argentina.

CFWF.F

CA$2.74

7D

0.5%

1Y

-18.2%

ProPetro Holding

US$802.9m

Operates as an integrated oilfield services company.

PUMP

US$7.58

7D

-1.6%

1Y

-18.4%