Devon Energy Corporation (DVN) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NYSE
Current Price
$51.63
PE Ratio (TTM)
12.1x
Intrinsic Value
$42.2
-22.4% margin of safety
COMPETITIVE MOAT
↑Permian Basin Dominance
Devon Energy possesses significant, low-cost production assets in the Permian Basin. This prime acreage offers a long-term competitive advantage due to its prolific nature and established infrastructure.
↑Operational Efficiency & Cost Leadership
The company demonstrates strong operational execution and cost management. This allows them to generate superior returns even in volatile commodity price environments.
↑Disciplined Capital Allocation
Devon's focus on shareholder returns through dividends and buybacks, coupled with strategic divestitures like the Eagle Ford sale, signals prudent capital management. This enhances long-term value creation.
INVESTMENT RISKS
↓Geopolitical Instability
Global political events can significantly disrupt oil supply and demand, leading to price shocks. This creates uncertainty for production and revenue forecasts.
↓Technological Disruption
Advancements in renewable energy and energy storage technologies could reduce long-term demand for fossil fuels. This poses a secular threat to the industry's future.
↓Execution Risk on Acquisitions/Divestitures
While the Eagle Ford sale was positive, future strategic moves carry execution risk. Poorly managed transactions could dilute shareholder value or impair operational efficiency.
Base case
DVN base case PE valuation
A base case PE valuation for DVN estimates a fair value of about $42.2 per share, against a current price of $51.63. The model assumes -1.7% annual earnings growth, a 14.63x target PE multiple, and a 10% discount rate.
Intrinsic Value
$42.2
Margin of safety
-22.4%
Expected annual return
-4.0%
Base case assumptions: -1.7% annual earnings growth, 14.63x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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)
12.1x
PEG Ratio
n/m
Earnings Yield
6.83%
ROE (TTM)
14.9%
Revenue/Share (TTM)
$21.00
Dividend Yield
2.19%
Debt/Equity
0.28x
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 12.1x combined with a PEG ratio of -2.17 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 (12.1x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-2.17) 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 -2.17, calculated by dividing the PE ratio (12.1x) 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 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.