Using the industry peer median P/E multiple (trailing + forward), Diamondback Energy, Inc. (FANG) has a fair value of $150.13 based on 4 comparable companies in the Oil & Gas Exploration & Production industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Diamondback Energy, Inc.FANG | 58,437 | 35.3x | 16.3x |
| EOG Resources, Inc.EOG | 80,098 | 16.2x | 14.3x |
| Occidental Petroleum CorporationOXY | 63,338 | 39.9x | 30.7x |
| ONEOK, Inc.OKE | 59,049 | 17.3x | 16.7x |
| EQT CorporationEQT | 41,845 | 20.3x | 14.0x |
| Industry Median | 18.8x | 15.5x | |
| (*) Profit after tax | 1,664 | 3,585 | |
| Equity Value | 31,241 | 55,559 | |
| (/) Outstanding shares | 289 | 289 | |
| Fair Price | $108 | $192 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.