Oil & Gas Exploration & Production · NYSE
Current Price
$51.08
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Devon Energy Corporation with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
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.
Earnings Yield
8.33%
ROE (TTM)
17.5%
Based on trailing twelve-month data, DVN has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether DVN is overvalued depends on comparing its PE ratio to Oil & Gas Exploration & Production peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Devon Energy Corporation using PE: (1) Compare the current PE against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 DVN, with a strong ROE of 17.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
