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FANG (Diamondback Energy) GF Value Rank : 7 (As of Oct. 31, 2024)


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What is Diamondback Energy GF Value Rank?

Diamondback Energy has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison of Diamondback Energy's GF Value Rank

For the Oil & Gas E&P subindustry, Diamondback Energy's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diamondback Energy's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's GF Value Rank falls into.



Diamondback Energy GF Value Rank Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's GF Value Rank 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