Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Current Valuation Ratios
Diamondback Energy Inc., current price multiples
| Diamondback Energy Inc. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price-earnings-growth (PEG) | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
| Price to book value (P/BV) | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Diamondback Energy Inc., historical price multiples
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited a fluctuating pattern over the observed period. It started at 25.48 in 2017 and decreased to 20.47 in 2018, indicating a lower market valuation relative to earnings. However, in 2019, there was a significant increase to 39.23, suggesting either higher market expectations or diminished earnings. Data for 2020 is missing, and by 2021 the ratio dropped markedly to 10.4, reflecting a substantial reduction in market valuation relative to earnings or improved earnings performance.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed a consistent downward trend from 20.31 in 2017 to 13.55 in 2019, indicating a growing operating profit relative to price or reduced market valuation. The data for 2020 is absent. By 2021, the ratio further decreased significantly to 5.67, suggesting an even more favorable operating profit relative to the company's market price or a further decline in price.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio presented a strong declining trend from 10.36 in 2017 to 2.42 in 2019, demonstrating a decreasing market valuation in relation to sales, which may indicate increased sales or reduced price levels. In 2020 there was an uptick to 3.96, reversing the earlier trend partially, followed by a slight reduction to 3.36 in 2021. This suggests some recovery in market valuation relative to sales but not to the initial higher levels.
- Price to Book Value (P/BV) Ratio
- This ratio declined significantly from 2.34 in 2017 to a low of 0.71 in 2019, highlighting that the market value became much lower compared to the book value, possibly due to declining investor confidence or increased book value. In 2020, there was a recovery to 1.24, and further increase to 1.88 in 2021, indicating improving market valuation relative to book value and potentially restored investor confidence or adjusted asset valuations.
Price to Earnings (P/E)
Diamondback Energy Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Diamondback Energy, Inc. (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/E Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) attributable to Diamondback Energy, Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Diamondback Energy Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
Over the observed periods, the share price exhibited notable fluctuations. It decreased from 125.15 US$ at the end of 2017 to a low of 59.48 US$ by the end of 2019, reflecting a significant downward trend. This was followed by a modest recovery to 69.06 US$ at the end of 2020 and a strong rebound reaching 127.89 US$ by the end of 2021, surpassing the initial 2017 level.
The earnings per share (EPS) showed a less stable trend. It started at 4.91 US$ at the end of 2017 and rose slightly to 5.14 US$ in 2018. However, EPS then experienced a sharp decline to 1.52 US$ in 2019 and plummeted further to a negative value of -28.59 US$ in 2020, indicating a substantial loss. In 2021, EPS recovered dramatically to 12.3 US$, the highest value in the provided timeframe, signaling a strong return to profitability.
The price-to-earnings (P/E) ratio initially decreased from 25.48 in 2017 to 20.47 in 2018, suggesting a relatively lower valuation compared to earnings. It then increased significantly to 39.23 in 2019, which could indicate market anticipation of future growth or elevated risk perception. The P/E ratio for 2020 was not available, likely reflecting the period's negative earnings. In 2021, it declined sharply to 10.4, reflecting a favorable valuation corresponding to the strong earnings performance that year.
Price to Operating Profit (P/OP)
Diamondback Energy Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/OP Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Diamondback Energy Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general decline from 125.15 US$ at the end of 2017 to a low of 59.48 US$ by the end of 2019. This downward trend reversed beginning in 2020, with the price increasing to 69.06 US$ and then surging significantly to 127.89 US$ by the end of 2021, surpassing the initial 2017 value.
- Operating Profit Per Share
- Operating profit per share remained relatively stable at around 6.15 US$ from 2017 to 2018, followed by a noticeable decline to 4.39 US$ in 2019. A substantial negative impact appears in 2020, with operating profit per share diving sharply to -34.65 US$. In 2021, a strong recovery occurred, bringing this metric up to 22.55 US$, the highest in the observed period.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio decreased steadily from 20.31 in 2017 to 13.55 in 2019, which correlates with the decline in both share price and operating profit per share. Data is missing for 2020, likely due to the negative operating profit in that year, rendering the ratio undefined or inapplicable. In 2021, the ratio dropped further to 5.67, indicative of the combined effect of a high operating profit per share and a recovering share price.
Price to Sales (P/S)
Diamondback Energy Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue from contracts with customers (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/S Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Revenue from contracts with customers ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Diamondback Energy Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a notable decline from 125.15 US$ at the end of 2017 to 59.48 US$ by the end of 2019. This was followed by a modest recovery in 2020, reaching 69.06 US$, and a significant rebound in 2021 to 127.89 US$, surpassing the initial 2017 level.
- Sales Per Share Progression
- Sales per share increased gradually from 12.08 US$ in 2017 to 12.96 US$ in 2018, then more than doubled to 24.56 US$ in 2019. There was a decline in 2020 to 17.44 US$, after which sales per share surged sharply to 38.03 US$ in 2021, indicating strong growth in revenue generation relative to shares outstanding.
- Price-to-Sales (P/S) Ratio Movement
- The P/S ratio decreased significantly from 10.36 in 2017 to 2.42 in 2019, pointing to a reduction in market valuation relative to sales during this period. This ratio partially recovered to 3.96 in 2020 but declined slightly again to 3.36 in 2021, which suggests that despite increases in sales per share, the market valuation relative to sales remained comparatively moderate and below the levels observed in 2017 and 2018.
- Overall Analysis
- The data reveals a period of market undervaluation or challenges between 2017 and 2019, reflected in declining share prices and P/S ratios despite increasing sales per share. The subsequent partial recovery in 2020 and substantial improvement in share price and sales per share in 2021 indicate a potentially improved operational performance or market sentiment. However, the P/S ratio did not rise proportionally with sales and share price in 2021, which might imply cautious investor expectations or changing market conditions affecting valuation multiples.
Price to Book Value (P/BV)
Diamondback Energy Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Diamondback Energy, Inc. stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/BV Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Total Diamondback Energy, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Diamondback Energy Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited notable fluctuation over the reported period. It started at $125.15 at the end of 2017, followed by a decline to $105.29 in 2018 and a significant drop to $59.48 in 2019. A modest recovery took place in 2020, with the price rising to $69.06, and a substantial increase occurred in 2021, with the share price reaching $127.89, exceeding the initial 2017 level.
- Book Value per Share (BVPS)
- Book value per share showed an overall upward trend from 2017 through 2019, rising from $53.53 in 2017 to $83.70 in 2019. However, this was followed by a decline to $55.65 in 2020. In 2021, the BVPS increased again to $68.13, although it remained below the 2019 peak.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio demonstrated a declining trend from 2.34 in 2017 to 0.71 in 2019, indicating that the share price decreased relative to the book value per share during this period. The ratio rebounded to 1.24 in 2020 and further increased to 1.88 in 2021, suggesting a improving market valuation relative to the company’s book value. Despite this recovery, the ratio in 2021 remained below the initial 2017 level.