DVN PE Ratio & Valuation,Is DVN Overvalued

DVN Relative Valuation

DVN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DVN is overvalued; if below, it's undervalued.

Historical Valuation

Devon Energy Corp (DVN) is now in the Fair zone, suggesting that its current forward PE ratio of 9.77 is considered Fairly compared with the five-year average of 8.14. The fair price of Devon Energy Corp (DVN) is between 27.86 to 40.55 according to relative valuation methord.

Relative Value

Fair Zone

27.86-40.55

Current Price：36.56

Fair

9.41

4.41

EV/EBITDA

Devon Energy Corp. (DVN) has a current EV/EBITDA of 4.41. The 5-year average EV/EBITDA is 4.35. The thresholds are as follows: Strongly Undervalued below 3.03, Undervalued between 3.03 and 3.69, Fairly Valued between 5.02 and 3.69, Overvalued between 5.02 and 5.68, and Strongly Overvalued above 5.68. The current Forward EV/EBITDA of 4.41 falls within the Historic Trend Line -Fairly Valued range.

9.44

EV/EBIT

Devon Energy Corp. (DVN) has a current EV/EBIT of 9.44. The 5-year average EV/EBIT is 7.03. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 5.71, Fairly Valued between 8.36 and 5.71, Overvalued between 8.36 and 9.68, and Strongly Overvalued above 9.68. The current Forward EV/EBIT of 9.44 falls within the Overvalued range.

1.62

Devon Energy Corp. (DVN) has a current PS of 1.62. The 5-year average PS is 1.87. The thresholds are as follows: Strongly Undervalued below 0.99, Undervalued between 0.99 and 1.43, Fairly Valued between 2.32 and 1.43, Overvalued between 2.32 and 2.76, and Strongly Overvalued above 2.76. The current Forward PS of 1.62 falls within the Historic Trend Line -Fairly Valued range.

3.57

P/OCF

Devon Energy Corp. (DVN) has a current P/OCF of 3.57. The 5-year average P/OCF is 3.95. The thresholds are as follows: Strongly Undervalued below 2.28, Undervalued between 2.28 and 3.11, Fairly Valued between 4.79 and 3.11, Overvalued between 4.79 and 5.62, and Strongly Overvalued above 5.62. The current Forward P/OCF of 3.57 falls within the Historic Trend Line -Fairly Valued range.

9.56

P/FCF

Devon Energy Corp. (DVN) has a current P/FCF of 9.56. The 5-year average P/FCF is 7.89. The thresholds are as follows: Strongly Undervalued below 3.32, Undervalued between 3.32 and 5.60, Fairly Valued between 10.17 and 5.60, Overvalued between 10.17 and 12.46, and Strongly Overvalued above 12.46. The current Forward P/FCF of 9.56 falls within the Historic Trend Line -Fairly Valued range.

Devon Energy Corp (DVN) has a current Price-to-Book (P/B) ratio of 1.54. Compared to its 3-year average P/B ratio of 2.24 , the current P/B ratio is approximately -31.51% higher. Relative to its 5-year average P/B ratio of 2.68, the current P/B ratio is about -42.59% higher. Devon Energy Corp (DVN) has a Forward Free Cash Flow (FCF) yield of approximately 11.97%. Compared to its 3-year average FCF yield of 5.37%, the current FCF yield is approximately 122.77% lower. Relative to its 5-year average FCF yield of 5.96% , the current FCF yield is about 101.03% lower.

1.48

P/B

Median3y

2.24

Median5y

2.68

11.97

FCF Yield

Median3y

5.37

Median5y

5.96

Competitors Valuation Multiple

The average P/S ratio for DVN's competitors is 2.13, providing a benchmark for relative valuation. Devon Energy Corp Corp (DVN) exhibits a P/S ratio of 1.62, which is -23.95% above the industry average. Given its robust revenue growth of 11.96%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DVN increased by 14.63% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.67 to 8.51.

The secondary factor is the Revenue Growth, contributed 11.96%to the performance.

Overall, the performance of DVN in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.96%

3.80B → 4.25B

Revenue Growth

-24.99%

21.73 → 16.30

Margin Expansion

27.66%

6.67 → 8.51

P/E Change

14.63%

32.73 → 37.52

Mkt Cap Growth

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Frequently Asked Questions

Is Devon Energy Corp (DVN) currently overvalued or undervalued?

What is Devon Energy Corp (DVN) fair value?

DVN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Devon Energy Corp (DVN) is between 27.86 to 40.55 according to relative valuation methord.

How does DVN's valuation metrics compare to the industry average?

What is the current P/B ratio for Devon Energy Corp (DVN) as of Dec 16 2025?

As of Dec 16 2025, Devon Energy Corp (DVN) has a P/B ratio of 1.54. This indicates that the market values DVN at 1.54 times its book value.

What is the current FCF Yield for Devon Energy Corp (DVN) as of Dec 16 2025?

As of Dec 16 2025, Devon Energy Corp (DVN) has a FCF Yield of 11.97%. This means that for every dollar of Devon Energy Corp’s market capitalization, the company generates 11.97 cents in free cash flow.

What is the current Forward P/E ratio for Devon Energy Corp (DVN) as of Dec 16 2025?

As of Dec 16 2025, Devon Energy Corp (DVN) has a Forward P/E ratio of 9.77. This means the market is willing to pay $9.77 for every dollar of Devon Energy Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Devon Energy Corp (DVN) as of Dec 16 2025?

As of Dec 16 2025, Devon Energy Corp (DVN) has a Forward P/S ratio of 1.62. This means the market is valuing DVN at $1.62 for every dollar of expected revenue over the next 12 months.

DVN Valuation