Latest Ratios: P/E Ratio 31.5x · EV/EBITDA 6.5x · ROE 4.0%. (2009–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $50.8B | $43.5B | $35.0B | $27.9B | $24.1B | $19.1B | $7.6B | $15.2B | $9.7B | $12.3B | $7.6B |
| Enterprise Value | $65.2B | $57.8B | $47.3B | $34.1B | $30.4B | $25.2B | $13.5B | $20.6B | $14.0B | $13.7B | $7.0B |
| P/E Ratio → | 31.51 | 26.24 | 10.55 | 8.94 | 5.56 | 8.77 | — | 63.60 | 11.50 | 25.56 | — |
| P/S Ratio | 3.38 | 2.89 | 3.17 | 3.35 | 2.52 | 2.84 | 2.72 | 3.84 | 4.47 | 10.23 | 14.39 |
| P/B Ratio | 1.21 | 1.01 | 0.88 | 1.60 | 1.54 | 1.44 | 0.78 | 1.02 | 0.69 | 2.21 | 1.89 |
| P/FCF | 9.70 | 8.30 | — | 23.15 | 8.90 | 11.45 | 103.32 | — | — | — | — |
| P/OCF | 5.80 | 4.96 | 5.46 | 4.72 | 3.82 | 4.85 | 3.61 | 5.55 | 6.22 | 13.87 | 22.85 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.85 | 4.29 | 4.09 | 3.17 | 3.74 | 4.79 | 5.19 | 6.45 | 11.39 | 13.36 |
| EV / EBITDA | 6.55 | 5.81 | 6.52 | 5.40 | 3.87 | 4.79 | — | 9.58 | 8.59 | 14.73 | 64.36 |
| EV / EBIT | 13.25 | 27.31 | 9.87 | 7.72 | 5.16 | 8.15 | — | 38.76 | 11.78 | 25.51 | — |
| EV / FCF | — | 11.05 | — | 28.30 | 11.20 | 15.12 | 182.05 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.2% | 35.2% | 45.1% | 57.5% | 70.1% | 63.3% | 22.6% | 40.2% | 51.3% | 54.3% | 41.9% |
| Operating Margin | 32.7% | 32.7% | 39.9% | 54.8% | 68.0% | 59.3% | -194.7% | 17.5% | 46.5% | 50.2% | -13.0% |
| Net Profit Margin | 11.1% | 11.1% | 30.3% | 37.7% | 45.8% | 32.3% | -160.6% | 6.1% | 38.9% | 40.0% | -31.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.0% | 4.0% | 11.7% | 19.0% | 30.3% | 18.9% | -36.6% | 1.7% | 8.6% | 10.0% | -5.4% |
| ROA | 2.4% | 2.4% | 6.9% | 11.4% | 17.9% | 10.8% | -22.0% | 1.1% | 5.8% | 7.3% | -4.1% |
| ROIC | 6.7% | 6.7% | 8.7% | 15.0% | 23.7% | 17.2% | -22.9% | 2.7% | 6.0% | 8.7% | -1.7% |
| ROCE | 7.6% | 7.6% | 9.8% | 17.8% | 28.3% | 21.1% | -28.3% | 3.2% | 7.3% | 9.8% | -1.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.31 | 0.39 | 0.41 | 0.51 | 0.60 | 0.37 | 0.32 | 0.27 | 0.28 |
| Debt / EBITDA | 1.46 | 1.46 | 1.72 | 1.08 | 0.81 | 1.28 | — | 2.55 | 2.77 | 1.62 | 10.24 |
| Net Debt / Equity | — | 0.33 | 0.31 | 0.36 | 0.40 | 0.46 | 0.59 | 0.36 | 0.30 | 0.25 | -0.14 |
| Net Debt / EBITDA | 1.44 | 1.44 | 1.69 | 0.98 | 0.79 | 1.16 | — | 2.50 | 2.64 | 1.49 | -5.00 |
| Debt / FCF | — | 2.75 | — | 5.16 | 2.29 | 3.66 | 78.73 | — | — | — | — |
| Interest Coverage | 8.68 | 8.68 | 16.46 | 25.27 | 36.77 | 15.48 | -27.77 | 3.07 | 13.56 | 13.12 | -3.05 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.42 | 0.42 | 0.44 | 0.77 | 0.81 | 1.01 | 0.49 | 0.69 | 0.91 | 0.62 | 8.56 |
| Quick Ratio | 0.40 | 0.40 | 0.41 | 0.74 | 0.77 | 0.96 | 0.46 | 0.66 | 0.87 | 0.61 | 8.55 |
| Cash Ratio | 0.02 | 0.02 | 0.03 | 0.28 | 0.09 | 0.45 | 0.08 | 0.10 | 0.21 | 0.19 | 7.96 |
| Asset Turnover | — | 0.21 | 0.16 | 0.29 | 0.36 | 0.29 | 0.16 | 0.17 | 0.10 | 0.16 | 0.10 |
| Inventory Turnover | 113.29 | 113.29 | 52.16 | 56.21 | 42.76 | 39.95 | 65.94 | 64.08 | 28.19 | 60.50 | 154.57 |
| Days Sales Outstanding | — | 33.67 | 52.48 | 37.07 | 38.38 | 36.30 | 56.70 | 58.38 | 72.11 | 70.16 | 83.18 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.7% | 4.5% | 5.2% | 6.5% | 1.6% | 3.1% | 0.7% | 0.4% | — | — |
| Payout Ratio | 69.5% | 69.5% | 47.3% | 45.9% | 35.8% | 14.3% | — | 46.7% | 4.4% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.8% | 9.5% | 11.2% | 18.0% | 11.4% | — | 1.6% | 8.7% | 3.9% | — |
| FCF Yield | 10.3% | 12.0% | — | 4.3% | 11.2% | 8.7% | 1.0% | — | — | — | — |
| Buyback Yield | 4.0% | 4.6% | 2.7% | 3.3% | 5.2% | 2.7% | 1.8% | 3.9% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 6.2% | 7.3% | 7.3% | 8.5% | 11.7% | 4.4% | 4.9% | 4.6% | 0.4% | 0.0% | 0.0% |
| Shares Outstanding | — | $289M | $214M | $180M | $177M | $177M | $158M | $164M | $105M | $98M | $75M |
Inventory depletion and integration
According to recent market data, Diamondback trades at a forward P/E of 8.79, suggesting that investors are pricing in significant execution risk following the Endeavor acquisition, despite the company's historical status as a best-in-class operator within the Permian Basin's competitive landscape.
The current valuation premium relative to the broader E&P sector appears to hinge on the market's expectation that the company can maintain its low-cost manufacturing advantage despite the integration of massive new acreage. Investors should monitor whether the forward multiple compresses further if production growth fails to offset the dilution and capital intensity inherent in the recent inorganic expansion.
As reported in financial statements, Diamondback's ROIC has trended downward from 3.9% in 2023Q4 to a marginal 0.2% in 2026Q1, indicating that the company is struggling to generate meaningful returns on its rapidly expanding asset base during this period of aggressive consolidation.
The sharp decline in return on invested capital suggests that the capital-intensive nature of recent acquisitions is currently outpacing the incremental cash flow generated by these new assets. This trend warrants further investigation into whether the company's 'Tier 1' inventory is being depleted faster than it can be replaced by high-return drilling opportunities.
Based on the company's reported figures, the cash conversion cycle has fluctuated wildly, swinging from 15 days in 2023Q4 to a negative 36 days in 2026Q1, reflecting significant instability in how the firm manages its receivables and payables amidst large-scale operational shifts.
The erratic nature of the CCC suggests that Diamondback's working capital management is currently being disrupted by the integration of new assets and lumpy capital expenditure cycles. This inconsistency makes it difficult to rely on standard efficiency metrics as a proxy for underlying operational health in the current environment.
According to quarterly balance sheet data, the current ratio has remained consistently below 1.0 since 2024Q3, reaching a low of 0.42 in 2025Q4, which indicates that the company maintains a very thin liquidity buffer relative to its immediate operational and financial obligations.
This persistent reliance on tight liquidity suggests that the company may have limited flexibility to absorb unexpected operational shocks or commodity price downturns without resorting to external financing. Investors should monitor whether this liquidity profile improves as the company moves past the initial integration phase of its recent major acquisitions.
The P/E ratio is frequently misapplied to Diamondback, as it fails to account for the non-cash depreciation and depletion charges inherent in the 'successful efforts' accounting method, which can significantly distort the company's true earnings power during periods of high exploration and acquisition activity.
Instead of relying on P/E, analysts should prioritize EV/EBITDA or P/FCF to better capture the cash-generating capacity of the underlying assets, which are less sensitive to the accounting volatility of the E&P sector. Focusing on earnings-based multiples in this business model often obscures the reality of the company's capital-intensive reinvestment requirements.
Includes 30+ ratios · 17 years · Updated daily
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Diamondback Energy, Inc.'s current P/E ratio is 31.5x. The historical average is 21.8x. This places it at the 80th percentile of its historical range.
Diamondback Energy, Inc.'s current EV/EBITDA is 6.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.8x.
Diamondback Energy, Inc.'s return on equity (ROE) is 4.0%. The historical average is 2.9%.
Based on historical data, Diamondback Energy, Inc. is trading at a P/E of 31.5x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Diamondback Energy, Inc.'s current dividend yield is 2.21% with a payout ratio of 69.5%.
Diamondback Energy, Inc. has 35.2% gross margin and 32.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Diamondback Energy, Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.