Assessing Diamondback Energy (FANG) Valuation After Recent Share Price Weakness

Diamondback Energy (FANG) has been drifting lower recently, even though its long term track record still looks solid. That gap between the share price and fundamentals is where this story starts.

See our latest analysis for Diamondback Energy.

At around $147 per share, Diamondback’s recent 1 week and year to date share price losses suggest momentum has cooled, even though its five year total shareholder return above 270 percent still reflects a powerful long term compounding story.

If that mix of short term volatility and long term strength has you rethinking your energy exposure, it could be a good moment to explore fast growing stocks with high insider ownership.

With analysts seeing roughly 20 percent upside and valuation models implying an even steeper discount, investors now face a key question: is Diamondback quietly undervalued here, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 17.9% Undervalued

With Diamondback last closing at $147 and the most followed narrative pointing to fair value near $179, the valuation gap rests on specific growth and margin assumptions.

The analysts have a consensus price target of $182.0 for Diamondback Energy based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $222.0, and the most bearish reporting a price target of just $143.0.

Read the complete narrative.

Want to know what kind of steady revenue climb, margin resilience and richer future earnings multiple are baked into that target? The full narrative explains the profit runway and valuation bridge behind this fair value call.

Result: Fair Value of $179.03 (UNDERVALUED)

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

However, rising operating costs and potential declines in well productivity could squeeze margins and challenge the assumption that buybacks and steady production will carry returns.

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

Build Your Own Diamondback Energy Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Diamondback Energy research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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