FANG PE Ratio & Valuation,Is FANG Overvalued

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 13.48 is considered Overvalued compared with the five-year average of 8.47. The fair price of Diamondback Energy Inc (FANG) is between 89.71 to 137.49 according to relative valuation methord. Compared to the current price of 152.05 USD , Diamondback Energy Inc is Overvalued By 10.59%.

Relative Value

Fair Zone

89.71-137.49

Current Price：152.05

10.59%

Overvalued

13.48

6.86

EV/EBITDA

Diamondback Energy Inc. (FANG) has a current EV/EBITDA of 6.86. The 5-year average EV/EBITDA is 5.12. The thresholds are as follows: Strongly Undervalued below 3.66, Undervalued between 3.66 and 4.39, Fairly Valued between 5.85 and 4.39, Overvalued between 5.85 and 6.58, and Strongly Overvalued above 6.58. The current Forward EV/EBITDA of 6.86 falls within the Strongly Overvalued range.

14.39

EV/EBIT

Diamondback Energy Inc. (FANG) has a current EV/EBIT of 14.39. The 5-year average EV/EBIT is 7.50. The thresholds are as follows: Strongly Undervalued below 2.71, Undervalued between 2.71 and 5.10, Fairly Valued between 9.90 and 5.10, Overvalued between 9.90 and 12.29, and Strongly Overvalued above 12.29. The current Forward EV/EBIT of 14.39 falls within the Strongly Overvalued range.

3.16

Diamondback Energy Inc. (FANG) has a current PS of 3.16. The 5-year average PS is 2.84. The thresholds are as follows: Strongly Undervalued below 1.89, Undervalued between 1.89 and 2.36, Fairly Valued between 3.31 and 2.36, Overvalued between 3.31 and 3.78, and Strongly Overvalued above 3.78. The current Forward PS of 3.16 falls within the Historic Trend Line -Fairly Valued range.

4.95

P/OCF

Diamondback Energy Inc. (FANG) has a current P/OCF of 4.95. The 5-year average P/OCF is 4.30. The thresholds are as follows: Strongly Undervalued below 2.66, Undervalued between 2.66 and 3.48, Fairly Valued between 5.12 and 3.48, Overvalued between 5.12 and 5.94, and Strongly Overvalued above 5.94. The current Forward P/OCF of 4.95 falls within the Historic Trend Line -Fairly Valued range.

9.19

P/FCF

Diamondback Energy Inc. (FANG) has a current P/FCF of 9.19. The 5-year average P/FCF is 7.64. The thresholds are as follows: Strongly Undervalued below 3.66, Undervalued between 3.66 and 5.65, Fairly Valued between 9.63 and 5.65, Overvalued between 9.63 and 11.62, and Strongly Overvalued above 11.62. The current Forward P/FCF of 9.19 falls within the Historic Trend Line -Fairly Valued range.

Diamondback Energy Inc (FANG) has a current Price-to-Book (P/B) ratio of 1.09. Compared to its 3-year average P/B ratio of 1.55 , the current P/B ratio is approximately -29.60% higher. Relative to its 5-year average P/B ratio of 1.57, the current P/B ratio is about -30.49% higher. Diamondback Energy Inc (FANG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.63%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.33% , the current FCF yield is about -100.00% lower.

1.09

P/B

Median3y

1.55

Median5y

1.57

-2.48

FCF Yield

Median3y

2.63

Median5y

4.33

Competitors Valuation Multiple

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

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of FANG decreased by 5.29% 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

-56.75%

24.79 → 10.72

P/E Change

-5.29%

162.68 → 154.07

Mkt Cap Growth

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Frequently Asked Questions

Is Diamondback Energy Inc (FANG) currently overvalued or undervalued?

What is Diamondback Energy Inc (FANG) fair value?

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. The fair price of Diamondback Energy Inc (FANG) is between 89.71 to 137.49 according to relative valuation methord.

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

What is the current P/B ratio for Diamondback Energy Inc (FANG) as of Dec 18 2025?

As of Dec 18 2025, Diamondback Energy Inc (FANG) has a P/B ratio of 1.09. This indicates that the market values FANG at 1.09 times its book value.

What is the current FCF Yield for Diamondback Energy Inc (FANG) as of Dec 18 2025?

As of Dec 18 2025, Diamondback Energy Inc (FANG) has a FCF Yield of 0.00%. This means that for every dollar of Diamondback Energy Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Diamondback Energy Inc (FANG) as of Dec 18 2025?

As of Dec 18 2025, Diamondback Energy Inc (FANG) has a Forward P/E ratio of 13.48. This means the market is willing to pay $13.48 for every dollar of Diamondback Energy Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Diamondback Energy Inc (FANG) as of Dec 18 2025?

As of Dec 18 2025, Diamondback Energy Inc (FANG) has a Forward P/S ratio of 0.00. This means the market is valuing FANG at $0.00 for every dollar of expected revenue over the next 12 months.

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