Diversified Energy Company PLC (DEC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2505.3%

$360.57

vs $13.84 price

Levered DCF

$624.97

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.68

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	3.1×	-8.98×	1.01×	-1.89×	-3.54×	-44.93×	10.04×	2.9×
P/B	1.07×	1.75×	1.3×	-7.74×	1.78×	1.2×	0.83×	0.78×
P/S	0.66×	1×	0.88×	0.62×	1.18×	2.6×	1.69×	2.01×
EV / EBITDA	4.39×	14.84×	1.52×	-5.55×	-6.54×	77.2×	5.28×	3.35×
Gross margin	25.5%	13.8%	23.4%	65.2%	52.7%	21.4%	60.7%	82.3%
Operating margin	15.1%	-5.4%	133.7%	-35.0%	-47.8%	-19.0%	23.2%	101.8%
Net margin	21.2%	-11.1%	87.3%	-32.6%	-33.3%	-5.7%	21.5%	69.4%
Current ratio	0.6×	0.4×	0.48×	0.31×	0.44×	0.48×	1.26×	1.74×
Debt / equity	3.08×	3.84×	2.23×	-9.62×	1.6×	0.83×	0.67×	0.65×
Interest coverage	1.16×	-0.31×	8.65×	-6.57×	-9.14×	-1.77×	2.93×	16.7×
Dividend yield	8.0%	10.6%	22.0%	12.1%	11.3%	9.3%	10.5%	5.4%
Payout ratio	24.9%	-95.0%	22.2%	-22.9%	-40.0%	-419.7%	82.6%	15.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.7%	-19.5%	129.4%	409.6%	-50.2%	-2.6%	10.6%	26.9%
Return on invested capital	4.6%	-0.5%	28.9%	-17.5%	-9.9%	-0.6%	4.3%	15.2%
Return on assets	5.5%	-2.2%	21.8%	-16.3%	-9.3%	-1.0%	5.0%	12.9%
Free cash flow yield	26.5%	37.0%	44.0%	25.5%	23.5%	20.4%	31.5%	11.9%
Earnings yield	32.4%	-11.1%	99.2%	-52.9%	-28.3%	-2.2%	12.7%	34.5%
Enterprise value	$4.1B	$2.5B	$2.1B	$2.6B	$2.2B	$1.8B	$1.4B	$1.1B
Net debt / EBITDA	3.25×	10.18×	0.96×	-3.07×	-3.08×	31.57×	2.34×	1.52×
Cash conversion cycle (days)	47	1	57	12	64	45	35	70