DVN Valuation

Devon Energy Corp

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35.600

+0.56(1.598%)1D

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 8.97 is considered Fairly compared with the five-year average of 8.39. The fair price of Devon Energy Corp (DVN) is between 26.25 to 44.66 according to relative valuation methord.

Relative Value

Fair Zone

26.25-44.66

Current Price：35.04

Fair

8.97

Trailing

Forward

4.17

EV/EBITDA

Devon Energy Corp. (DVN) has a current EV/EBITDA of 4.17. The 5-year average EV/EBITDA is 4.33. The thresholds are as follows: Strongly Undervalued below 2.94, Undervalued between 2.94 and 3.64, Fairly Valued between 5.03 and 3.64, Overvalued between 5.03 and 5.72, and Strongly Overvalued above 5.72. The current Forward EV/EBITDA of 4.17 falls within the Historic Trend Line -Fairly Valued range.

8.67

EV/EBIT

Devon Energy Corp. (DVN) has a current EV/EBIT of 8.67. The 5-year average EV/EBIT is 7.01. The thresholds are as follows: Strongly Undervalued below 4.37, Undervalued between 4.37 and 5.69, Fairly Valued between 8.33 and 5.69, Overvalued between 8.33 and 9.65, and Strongly Overvalued above 9.65. The current Forward EV/EBIT of 8.67 falls within the Overvalued range.

35.04

Devon Energy Corp. (DVN) has a current PS of 35.04. The 5-year average PS is 2.18. The thresholds are as follows: Strongly Undervalued below -4.06, Undervalued between -4.06 and -0.94, Fairly Valued between 5.29 and -0.94, Overvalued between 5.29 and 8.41, and Strongly Overvalued above 8.41. The current Forward PS of 35.04 falls within the Strongly Overvalued range.

3.33

P/OCF

Devon Energy Corp. (DVN) has a current P/OCF of 3.33. The 5-year average P/OCF is 3.94. The thresholds are as follows: Strongly Undervalued below 2.22, Undervalued between 2.22 and 3.08, Fairly Valued between 4.81 and 3.08, Overvalued between 4.81 and 5.67, and Strongly Overvalued above 5.67. The current Forward P/OCF of 3.33 falls within the Historic Trend Line -Fairly Valued range.

8.83

P/FCF

Devon Energy Corp. (DVN) has a current P/FCF of 8.83. The 5-year average P/FCF is 7.84. The thresholds are as follows: Strongly Undervalued below 3.24, Undervalued between 3.24 and 5.54, Fairly Valued between 10.13 and 5.54, Overvalued between 10.13 and 12.43, and Strongly Overvalued above 12.43. The current Forward P/FCF of 8.83 falls within the Historic Trend Line -Fairly Valued range.

Devon Energy Corp (DVN) has a current Price-to-Book (P/B) ratio of 1.44. Compared to its 3-year average P/B ratio of 46853.20 , the current P/B ratio is approximately -100.00% higher. Relative to its 5-year average P/B ratio of 28015.84, the current P/B ratio is about -99.99% higher. Devon Energy Corp (DVN) has a Forward Free Cash Flow (FCF) yield of approximately 0.13%. Compared to its 3-year average FCF yield of 5.13%, the current FCF yield is approximately -97.48% lower. Relative to its 5-year average FCF yield of 5.74% , the current FCF yield is about -97.75% lower.

1.44

P/B

Median3y

46853.20

Median5y

28015.84

0.13

FCF Yield

Median3y

5.13

Median5y

5.74

Competitors Valuation Multiple

The average P/S ratio for DVN's competitors is 42.51, providing a benchmark for relative valuation. Devon Energy Corp Corp (DVN) exhibits a P/S ratio of 35.04, which is -17.58% above the industry average. Given its robust revenue growth of 11.96%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Permian Resources Corp

Performance Decomposition

Market capitalization of DVN decreased by 7.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.80B to 4.25B.

The secondary factor is the P/E Change, contributed 5.96%to the performance.

Overall, the performance of DVN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

11.96%

3.80B → 4.25B

Revenue Growth

-24.99%

21.73 → 16.30

Margin Expansion

5.96%

7.79 → 8.26

P/E Change

-7.07%