Diamondback Energy, Inc. (FANG) Fair Value & PE Analysis
Oil & Gas Exploration & Production · NASDAQ
Current Price
$192.13
PE Ratio (TTM)
134.8x
Intrinsic Value
Outside reliable range
What Is Diamondback Energy, Inc.'s Fair Value?
The PE model output for Diamondback Energy, Inc. (FANG) falls outside the range we consider reliable, often because earnings are unusually low, negative, or volatile. Treat any single fair value number with extra caution here.
How our PE model works · Recalculate in PE mode · FANG intrinsic value (DCF view)
Is Diamondback Energy, Inc. (FANG) Overvalued?
Because the model output for FANG is outside our reliability range, we do not give an overvalued or undervalued read here. Use the PE calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Permian Basin Expertise
Diamondback possesses deep operational knowledge and infrastructure within the prolific Permian Basin. This allows for efficient extraction and cost advantages in a highly competitive region.
↑Scale and Efficiency
The company's significant production scale and focus on operational efficiency contribute to lower per-barrel costs. This provides a competitive edge, especially during periods of price volatility.
↑Strategic Acquisitions
Diamondback has a history of successfully integrating acquired assets. This strategy allows them to expand their acreage and production base, enhancing their market position.
INVESTMENT RISKS
↓Commodity Price Volatility
Oil and gas prices are inherently volatile and subject to global supply and demand dynamics. Significant price drops can severely impact profitability and cash flows.
↓Regulatory and Environmental Scrutiny
The oil and gas industry faces increasing regulatory and environmental pressures. Stricter regulations can lead to higher operating costs and potential project delays.
↓Competition in Permian
The Permian Basin is a highly competitive area with many large players, including ExxonMobil. Intense competition can drive up acquisition costs and pressure margins.
Base case
FANG base case PE valuation
Base case assumptions: 6.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 FANG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Diamondback Energy, Inc. respond.
Open PE Calculator for FANGCompany Overview
Diamondback Energy, Inc. operates as an independent enterprise focused on oil and natural gas. Its core business involves the acquisition, development, exploration, and production of unconventional and onshore hydrocarbon reserves, predominantly located within the Permian Basin across West Texas and New Mexico. The company's development efforts primarily target significant geological formations, including the Spraberry and Wolfcamp in the Midland Basin, as well as the Wolfcamp and Bone Spring within the Delaware Basin – both crucial components of the broader Permian. As of December 31, 2021, Diamondback Energy's asset base included approximately 524,700 gross acres under its control in the Permian Basin. At that time, its estimated proved oil and natural gas reserves amounted to 1,788,991 thousand barrels of crude oil equivalent. The company also maintained working interests in 5,289 gross producing wells and held royalty interests in an additional 6,455 wells. Beyond its direct well operations, Diamondback Energy possesses mineral interests spanning roughly 930,871 gross acres and 27,027 net royalty acres across the Permian Basin and the Eagle Ford Shale. Furthermore, it manages a portfolio of midstream infrastructure, owning, operating, developing, and acquiring assets such as 866 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system within the Midland and Delaware Basins of the Permian. Established in 2007, Diamondback Energy, Inc. is headquartered in Midland, Texas.
Financial Metrics — FANG PE Stock Valuation Data
PE Ratio (TTM)
134.8x
PEG Ratio
n/m
Earnings Yield
0.74%
ROE (TTM)
1.1%
Revenue/Share (TTM)
$53.72
Dividend Yield
2.16%
Debt/Equity
0.38x
Frequently Asked Questions
What is the PE ratio of FANG?
The trailing twelve-month PE ratio of FANG reflects how much investors pay per dollar of Diamondback Energy, Inc.'s earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is FANG overvalued based on PE ratio?
FANG's PE of 134.8x combined with a PEG ratio of -1.42 provides a growth-adjusted perspective. FANG 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 FANG stock using PE ratio?
To value Diamondback Energy, Inc. using PE: (1) Compare the current PE (134.8x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (-1.42) 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 FANG?
FANG's PEG ratio is -1.42, calculated by dividing the PE ratio (134.8x) by the expected earnings growth rate. Because FANG 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 FANG stock valuation?
PE ratio gives a quick relative read — how FANG 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 FANG 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 FANG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.