GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Diamondback Energy Inc (NAS:FANG) » Definitions » PE Ratio (TTM)

FANG (Diamondback Energy) PE Ratio (TTM) : 9.13 (As of Oct. 31, 2024)


View and export this data going back to 2012. Start your Free Trial

What is Diamondback Energy PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-31), Diamondback Energy's share price is $176.63. Diamondback Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $19.35. Therefore, Diamondback Energy's PE Ratio (TTM) for today is 9.13.

Good Sign:

Diamondback Energy Inc stock PE Ratio (=9.13) is close to 1-year low of 8.44


The historical rank and industry rank for Diamondback Energy's PE Ratio (TTM) or its related term are showing as below:

FANG' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 4.91   Med: 13.08   Max: 67.92
Current: 9.14


During the past 13 years, the highest PE Ratio (TTM) of Diamondback Energy was 67.92. The lowest was 4.91. And the median was 13.08.


FANG's PE Ratio (TTM) is ranked better than
60.09% of 644 companies
in the Oil & Gas industry
Industry Median: 10.99 vs FANG: 9.14

Diamondback Energy's Earnings per Share (Diluted) for the three months ended in Jun. 2024 was $4.66. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $19.35.

As of today (2024-10-31), Diamondback Energy's share price is $176.63. Diamondback Energy's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $19.25. Therefore, Diamondback Energy's PE Ratio without NRI for today is 9.18.

During the past 13 years, Diamondback Energy's highest PE Ratio without NRI was 258.09. The lowest was 2.99. And the median was 14.89.

Diamondback Energy's EPS without NRI for the three months ended in Jun. 2024 was $4.52. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $19.25.

During the past 12 months, Diamondback Energy's average EPS without NRI Growth Rate was -3.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was 88.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 35.10% per year. During the past 10 years, the average EPS without NRI Growth Rate was 44.20% per year.

During the past 13 years, Diamondback Energy's highest 3-Year average EPS without NRI Growth Rate was 205.70% per year. The lowest was -600.70% per year. And the median was 52.60% per year.

Diamondback Energy's EPS (Basic) for the three months ended in Jun. 2024 was $4.66. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $19.35.


Diamondback Energy PE Ratio (TTM) Historical Data

The historical data trend for Diamondback Energy's PE Ratio (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diamondback Energy PE Ratio (TTM) Chart

Diamondback Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 63.17 At Loss 8.81 5.56 8.94

Diamondback Energy Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.82 8.79 8.94 11.17 10.35

Competitive Comparison of Diamondback Energy's PE Ratio (TTM)

For the Oil & Gas E&P subindustry, Diamondback Energy's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diamondback Energy's PE Ratio (TTM) Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diamondback Energy's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's PE Ratio (TTM) falls into.



Diamondback Energy PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Diamondback Energy's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=176.63/19.350
=9.13

Diamondback Energy's Share Price of today is $176.63.
Diamondback Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $19.35.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Diamondback Energy  (NAS:FANG) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).


Diamondback Energy PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Diamondback Energy Business Description

Address
500 West Texas Avenue, Suite 1200, Midland, TX, USA, 79701
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.
Executives
Teresa L. Dick officer: CFO, Exec. VP, Assist. Sec. 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Van't Hof Matthew Kaes officer: Sr. VP - Strategy & Corp Dev 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Daniel N Wesson officer: Exec. VP - Operations 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Matt Zmigrosky officer: Exec. VP and General Counsel 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Travis D. Stice director, officer: Chief Executive Officer 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
David L Houston director 14313 NORTH MAY AVENUE, OKLAHOMA CITY OK 73134
Steven E West director 411 WEST PUTNAM AVE., SUITE 125, GREENWICH CT 06830
Frank D. Tsuru director 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Rebecca A Klein director 1411 E MISSION AVE, SPOKANE WA 99202
Jennifer Soliman officer: Sr. VP and Chief HR Officer 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Russell Pantermuehl officer: Exec. VP Reservoir Engineering 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Michael P Cross director 515 CENTRAL PARK, OKLAHOMA CITY OK 73101
Thomas F. Hawkins officer: Sr. VP - Land 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Stephanie K. Mains director C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Vincent K Brooks director 900 POLO CLUB DRIVE, AUSTIN TX 78737