Devon Energy Corporation

NYSE:DVN Stock Report

Market Cap: US$31.4b

Devon Energy Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($50.18) is trading below our estimate of fair value ($63.26)

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?

Other financial metrics that can be useful for relative valuation.

DVN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA5x
PEG Ratio-2.4x

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 Average16.8x
FANG Diamondback Energy
11.3x13.3%US$35.1b
HES Hess
33.8x17.1%US$46.1b
PXD Pioneer Natural Resources
12.6x-0.5%US$60.7b
EQT EQT
9.4x20.5%US$15.9b
DVN Devon Energy
8.5x-3.6%US$31.4b

Price-To-Earnings vs Peers: DVN is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DVN is good value based on its Price-To-Earnings Ratio (8.5x) compared to the US Oil and Gas industry average (9.4x).


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 Ratio8.5x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: DVN is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).


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$50.18
US$53.76
+7.1%
10.9%US$69.00US$46.00n/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$47.00n/a28
Oct ’24US$47.70
US$60.34
+26.5%
12.7%US$79.00US$50.00n/a28
Sep ’24US$52.92
US$60.20
+13.8%
13.1%US$79.00US$50.00n/a27
Aug ’24US$53.68
US$59.78
+11.4%
15.6%US$77.00US$38.00n/a27
Jul ’24US$48.34
US$61.56
+27.3%
16.2%US$81.00US$38.00n/a27
Jun ’24US$46.78
US$62.92
+34.5%
17.1%US$87.00US$38.00n/a27
May ’24US$53.24
US$66.03
+24.0%
16.0%US$87.00US$45.00n/a28
Apr ’24US$50.61
US$66.53
+31.5%
16.3%US$87.00US$45.00n/a28
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
Oct ’23US$60.13
US$82.00
+36.4%
18.0%US$115.00US$46.00US$47.7016
Sep ’23US$68.16
US$77.26
+13.3%
18.2%US$115.00US$46.00US$52.9227
Aug ’23US$61.57
US$77.58
+26.0%
17.5%US$115.00US$57.90US$53.6824
Jul ’23US$55.11
US$79.28
+43.9%
15.5%US$102.00US$48.00US$48.3428
Jun ’23US$76.48
US$77.46
+1.3%
13.0%US$100.00US$48.00US$46.7828
May ’23US$58.17
US$74.54
+28.1%
12.2%US$91.00US$52.00US$53.2428
Apr ’23US$60.35
US$67.57
+12.0%
12.5%US$89.00US$50.00US$50.6128
Mar ’23US$59.25
US$58.68
-1.0%
11.1%US$70.00US$45.00US$54.7431

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


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