FANG Valuation

Diamondback Energy Inc

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143.650

+2.88(2.046%)1D

FANG Relative Valuation

FANG'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, FANG is overvalued; if below, it's undervalued.

Historical Valuation

Diamondback Energy Inc (FANG) is now in the Overvalued zone, suggesting that its current forward PE ratio of 13.06 is considered Overvalued compared with the five-year average of 8.35. The fair price of Diamondback Energy Inc (FANG) is between 84.90 to 129.36 according to relative valuation methord. Compared to the current price of 143.65 USD , Diamondback Energy Inc is Overvalued By 11.04%.

Relative Value

Fair Zone

84.90-129.36

Current Price：143.65

11.04%

Overvalued

13.06

Trailing

Forward

6.48

EV/EBITDA

Diamondback Energy Inc. (FANG) has a current EV/EBITDA of 6.48. The 5-year average EV/EBITDA is 5.07. The thresholds are as follows: Strongly Undervalued below 3.70, Undervalued between 3.70 and 4.38, Fairly Valued between 5.75 and 4.38, Overvalued between 5.75 and 6.43, and Strongly Overvalued above 6.43. The current Forward EV/EBITDA of 6.48 falls within the Strongly Overvalued range.

13.50

EV/EBIT

Diamondback Energy Inc. (FANG) has a current EV/EBIT of 13.50. The 5-year average EV/EBIT is 7.32. The thresholds are as follows: Strongly Undervalued below 3.10, Undervalued between 3.10 and 5.21, Fairly Valued between 9.43 and 5.21, Overvalued between 9.43 and 11.54, and Strongly Overvalued above 11.54. The current Forward EV/EBIT of 13.50 falls within the Strongly Overvalued range.

143.65

Diamondback Energy Inc. (FANG) has a current PS of 143.65. The 5-year average PS is 3.81. The thresholds are as follows: Strongly Undervalued below -19.79, Undervalued between -19.79 and -7.99, Fairly Valued between 15.62 and -7.99, Overvalued between 15.62 and 27.42, and Strongly Overvalued above 27.42. The current Forward PS of 143.65 falls within the Strongly Overvalued range.

4.62

P/OCF

Diamondback Energy Inc. (FANG) has a current P/OCF of 4.62. The 5-year average P/OCF is 4.25. The thresholds are as follows: Strongly Undervalued below 2.55, Undervalued between 2.55 and 3.40, Fairly Valued between 5.10 and 3.40, Overvalued between 5.10 and 5.96, and Strongly Overvalued above 5.96. The current Forward P/OCF of 4.62 falls within the Historic Trend Line -Fairly Valued range.

8.30

P/FCF

Diamondback Energy Inc. (FANG) has a current P/FCF of 8.30. The 5-year average P/FCF is 7.58. The thresholds are as follows: Strongly Undervalued below 3.59, Undervalued between 3.59 and 5.58, Fairly Valued between 9.58 and 5.58, Overvalued between 9.58 and 11.57, and Strongly Overvalued above 11.57. The current Forward P/FCF of 8.30 falls within the Historic Trend Line -Fairly Valued range.

Diamondback Energy Inc (FANG) has a current Price-to-Book (P/B) ratio of 1.05. Compared to its 3-year average P/B ratio of 1.58 , the current P/B ratio is approximately -33.29% higher. Relative to its 5-year average P/B ratio of 1.56, the current P/B ratio is about -32.61% higher. Diamondback Energy Inc (FANG) has a Forward Free Cash Flow (FCF) yield of approximately -2.66%. Compared to its 3-year average FCF yield of 3.61%, the current FCF yield is approximately -173.63% lower. Relative to its 5-year average FCF yield of 4.62% , the current FCF yield is about -157.59% lower.

1.05

P/B

Median3y

1.58

Median5y

1.56

-2.66

FCF Yield

Median3y

3.61

Median5y

4.62

Competitors Valuation Multiple

The average P/S ratio for FANG's competitors is 48.32, providing a benchmark for relative valuation. Diamondback Energy Inc Corp (FANG) exhibits a P/S ratio of 143.65, which is 197.29% above the industry average. Given its robust revenue growth of 48.36%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

FANG.O

Diamondback Energy Inc

Woodside Energy Group Ltd

16.89

32.11B

AR.N

Antero Resources Corp

Comstock Resources Inc

Performance Decomposition

Market capitalization of FANG decreased by 19.11% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.65B to 3.92B.

The secondary factor is the Margin Expansion, contributed 3.10%to the performance.

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

48.36%

2.65B → 3.92B

Revenue Growth

3.10%

26.77 → 27.60

Margin Expansion

-70.57%

33.97 → 10.00

P/E Change

-19.11%