Oil & Gas Exploration & Production · NYSE
Current Price
$51.08
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Devon Energy Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy Corporation was incorporated in 1971 and is headquartered in Oklahoma City, Oklahoma.
ROIC (TTM)
8.9%
ROE (TTM)
17.5%
FCF Yield
9.61%
Based on trailing twelve-month data, DVN shows a free cash flow per share of N/A and a ROIC of 8.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 9.61% are important context metrics when evaluating DVN's stock valuation relative to peers.
The intrinsic value of DVN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether DVN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $51.08. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Devon Energy Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Exploration & Production industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DVN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Devon Energy Corporation, this means projecting how much free cash flow the Oil & Gas Exploration & Production will produce over the next 5-10 years, then discounting those amounts to today's dollars. DVN's ROIC of 8.9% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DVN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
