Devon Energy Corporation (DVN) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$44.46
PE Ratio (TTM)
12.3x
Intrinsic Value
$46.25
+3.9% margin of safety
COMPETITIVE MOAT
↑Low-Cost Production Assets
Devon possesses high-quality, low-cost oil and gas reserves in prime U.S. basins. This allows for strong profitability even during commodity price downturns.
↑Operational Efficiency and Scale
The company's extensive infrastructure and expertise in efficient extraction drive down per-barrel costs. This scale provides a significant competitive advantage.
↑Disciplined Capital Allocation
Devon's focus on returning capital to shareholders through dividends and buybacks, alongside strategic reinvestment, enhances shareholder value. This disciplined approach attracts investors.
INVESTMENT RISKS
↓Geopolitical Instability
Global events can significantly disrupt oil supply chains and demand, leading to price shocks. Geopolitical tensions create uncertainty for the entire E&P sector.
↓Transition to Renewable Energy
The long-term global shift towards cleaner energy sources could reduce demand for fossil fuels. This secular trend poses a strategic challenge for oil and gas companies.
↓Execution Risk on Acquisitions
While strategic acquisitions can enhance growth, integration challenges and overpayment can destroy shareholder value. Successful execution is critical.
Base case
DVN base case PE valuation
A base case PE valuation for DVN estimates a fair value of about $46.25 per share, against a current price of $44.46. The model assumes 2.8% annual earnings growth, a 12x target PE multiple, and a 10% discount rate.
Intrinsic Value
$46.25
Margin of safety
+3.9%
Expected annual return
+0.8%
Base case assumptions: 2.8% annual earnings growth, 12x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DVN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Devon Energy Corporation respond.
Open PE Calculator for DVNCompany Overview
As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States. The company manages roughly 5,134 gross wells. Established in 1971, its corporate headquarters are located in Oklahoma City, Oklahoma.
Financial Metrics — DVN PE Stock Valuation Data
PE Ratio (TTM)
12.3x
PEG Ratio
n/m
Earnings Yield
8.21%
ROE (TTM)
14.8%
Revenue/Share (TTM)
$26.64
Dividend Yield
2.34%
Debt/Equity
0.56x
Frequently Asked Questions
What is the PE ratio of DVN?
The trailing twelve-month PE ratio of DVN reflects how much investors pay per dollar of Devon Energy Corporation's earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is DVN overvalued based on PE ratio?
DVN's PE of 12.3x combined with a PEG ratio of -0.68 provides a growth-adjusted perspective. DVN has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Exploration & Production, a DCF analysis may be more appropriate.
How do I value DVN stock using PE ratio?
To value Devon Energy Corporation using PE: (1) Compare the current PE (12.3x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-0.68) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DVN?
DVN's PEG ratio is -0.68, calculated by dividing the PE ratio (12.3x) by the expected earnings growth rate. Because DVN has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DVN stock valuation?
PE ratio gives a quick relative read — how DVN is priced versus Oil & Gas Exploration & Production peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DVN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value DVN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.