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    Diamondback Energy (FANG): Assessing Valuation After Recent Period of Quiet Share Price Movement

    Simply Wall St·10/03/2025 21:02:43
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    Diamondback Energy (FANG) has seen its stock move quietly over the past month, with shares down about 4%. Investors are considering its latest financial results and wondering how current valuations compare to the company's long-term growth prospects.

    See our latest analysis for Diamondback Energy.

    Zooming out, Diamondback Energy’s share price drifted lower over the past month, but the bigger picture reveals a largely steady run, with total shareholder returns essentially flat over the past year. Recent trends suggest that investor sentiment is cautiously weighing growth potential against sector risks, and short-term pullbacks have not fully erased longer-term gains.

    If the energy sector’s quieter moves have you looking for more dynamic investment ideas, now is the perfect time to broaden your perspective and discover fast growing stocks with high insider ownership

    With Diamondback trading well below analyst price targets despite recent gains, the key question is whether the current price still offers upside for patient investors or if the market is already factoring in future growth.

    Most Popular Narrative: 20.8% Undervalued

    Diamondback Energy’s last closing price of $143.19 trails the most-followed narrative’s fair value of $180.86. With analysts factoring in long-term, efficiency-driven growth, the stock appears set to outstrip current market expectations if forecasts prove accurate.

    Ongoing consolidation in the Permian Basin, with Diamondback positioned as the "consolidator of choice" due to its industry-best integration, low cost structure, and ability to deliver synergies from recent large acquisitions (for example, Double Eagle and Endeavor), supports future growth in scale, cost savings, and higher EBITDA margins.

    Read the complete narrative.

    Curious what bold assumptions fuel such a strong upside view? The narrative leans on one major financial metric and a valuation multiple more common in growth sectors to arrive at this price. Wondering what growth and profitability estimates justify that premium? The full story holds the key to these projections.

    Result: Fair Value of $180.86 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, rising operating expenses in the Permian and uncertainty around oil price swings could challenge Diamondback’s long-term profit outlook and put pressure on future returns.

    Find out about the key risks to this Diamondback Energy narrative.

    Build Your Own Diamondback Energy Narrative

    If you see things differently or want to follow your own logic, the data is yours to explore. Build your own view in just a few minutes. Do it your way

    A great starting point for your Diamondback Energy research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for More Investment Ideas?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.