Diamondback Energy, Inc. (FANG) 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

-65.3%

$69.88

vs $201.40 price

Levered DCF

$280.16

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.67

Distress zone

Rating

B-

Overall 3 / 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	26.24×	10.55×	8.94×	5.56×	8.73×	-1.69×	63.17×	11.47×
P/B	1.18×	0.93×	1.68×	1.61×	1.58×	0.87×	1.15×	0.71×
P/S	2.89×	3.17×	3.35×	2.52×	2.82×	2.72×	3.83×	4.46×
EV / EBITDA	8.14×	6.19×	5.53×	4.2×	5.76×	-3.16×	10.35×	7.72×
Gross margin	35.2%	45.1%	57.5%	70.1%	63.3%	22.6%	40.2%	51.3%
Operating margin	32.7%	39.9%	54.8%	68.0%	59.3%	-194.7%	17.5%	46.5%
Net margin	11.1%	30.3%	37.7%	45.8%	32.3%	-160.6%	6.1%	38.9%
Current ratio	0.42×	0.44×	0.77×	0.81×	1.01×	0.49×	0.69×	0.91×
Debt / equity	0.4×	0.33×	0.41×	0.43×	0.56×	0.67×	0.41×	0.33×
Interest coverage	20.16×	15.11×	26.11×	40.68×	20.01×	-27.24×	4.02×	11.51×
Dividend yield	2.7%	4.5%	5.2%	6.5%	1.6%	3.1%	0.7%	0.4%
Payout ratio	69.5%	47.3%	45.9%	35.8%	14.3%	-5.2%	46.7%	4.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.5%	8.8%	18.9%	29.2%	18.1%	-51.4%	1.8%	6.2%
Return on invested capital	6.0%	5.8%	13.3%	21.0%	14.5%	-26.5%	2.7%	4.2%
Return on assets	2.3%	5.0%	10.8%	16.7%	9.5%	-25.6%	1.0%	3.9%
Free cash flow yield	12.0%	-15.4%	4.3%	11.2%	8.8%	1.0%	-6.3%	-19.7%
Earnings yield	3.8%	9.5%	11.3%	18.2%	11.5%	-59.1%	1.6%	8.7%
Enterprise value	$58.2B	$47.3B	$34.1B	$30.4B	$25.2B	$13.5B	$20.5B	$14B
Net debt / EBITDA	2.06×	1.61×	1.01×	0.86×	1.4×	-1.36×	2.7×	2.38×
Cash conversion cycle (days)	-7	44	17	31	40	50	37	41