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 14.40 is considered Overvalued compared with the five-year average of 8.44. The fair price of Diamondback Energy Inc (FANG) is between 90.16 to 136.42 according to relative valuation methord. Compared to the current price of 159.51 USD , Diamondback Energy Inc is Overvalued By 16.93%.
Relative Value
Fair Zone
90.16-136.42
Current Price：159.51
16.93%
Overvalued
14.40
PE
1Y
3Y
5Y
Trailing
Forward
6.94
EV/EBITDA
Diamondback Energy Inc. (FANG) has a current EV/EBITDA of 6.94. The 5-year average EV/EBITDA is 5.11. The thresholds are as follows: Strongly Undervalued below 3.69, Undervalued between 3.69 and 4.40, Fairly Valued between 5.82 and 4.40, Overvalued between 5.82 and 6.53, and Strongly Overvalued above 6.53. The current Forward EV/EBITDA of 6.94 falls within the Strongly Overvalued range.
14.54
EV/EBIT
Diamondback Energy Inc. (FANG) has a current EV/EBIT of 14.54. The 5-year average EV/EBIT is 7.47. The thresholds are as follows: Strongly Undervalued below 2.81, Undervalued between 2.81 and 5.14, Fairly Valued between 9.80 and 5.14, Overvalued between 9.80 and 12.13, and Strongly Overvalued above 12.13. The current Forward EV/EBIT of 14.54 falls within the Strongly Overvalued range.
3.24
PS
Diamondback Energy Inc. (FANG) has a current PS of 3.24. The 5-year average PS is 2.83. The thresholds are as follows: Strongly Undervalued below 1.87, Undervalued between 1.87 and 2.35, Fairly Valued between 3.31 and 2.35, Overvalued between 3.31 and 3.78, and Strongly Overvalued above 3.78. The current Forward PS of 3.24 falls within the Historic Trend Line -Fairly Valued range.
5.09
P/OCF
Diamondback Energy Inc. (FANG) has a current P/OCF of 5.09. The 5-year average P/OCF is 4.29. The thresholds are as follows: Strongly Undervalued below 2.64, Undervalued between 2.64 and 3.47, Fairly Valued between 5.11 and 3.47, Overvalued between 5.11 and 5.94, and Strongly Overvalued above 5.94. The current Forward P/OCF of 5.09 falls within the Historic Trend Line -Fairly Valued range.
9.44
P/FCF
Diamondback Energy Inc. (FANG) has a current P/FCF of 9.44. The 5-year average P/FCF is 7.63. The thresholds are as follows: Strongly Undervalued below 3.66, Undervalued between 3.66 and 5.65, Fairly Valued between 9.62 and 5.65, Overvalued between 9.62 and 11.60, and Strongly Overvalued above 11.60. The current Forward P/FCF of 9.44 falls within the Historic Trend Line -Fairly Valued range.
Diamondback Energy Inc (FANG) has a current Price-to-Book (P/B) ratio of 1.17. Compared to its 3-year average P/B ratio of 1.56 , the current P/B ratio is approximately -24.97% higher. Relative to its 5-year average P/B ratio of 1.57, the current P/B ratio is about -25.51% 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 2.82%, 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.
1.17
P/B
Median3y
1.56
Median5y
1.57
-2.41
FCF Yield
Median3y
2.82
Median5y
4.33
Competitors Valuation Multiple
The average P/S ratio for FANG's competitors is 2.55, providing a benchmark for relative valuation. Diamondback Energy Inc Corp (FANG) exhibits a P/S ratio of , which is -100.00% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of FANG decreased by 1.95% 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.
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FAQ
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