Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas, the United States. The company primarily focuses on the development of the Spraberry and Wolfcamp formations of the Midland Basin; and the Wolfcamp and Bone Spring formations of the Delaware Basin, both of which are part of the Permian Basin in West Texas and New Mexico.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $192.00 Implied EV: $68.57B |
What growth rate is the market pricing in at $190?
The market implies +17.5% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +31.7%, reflecting heavy growth investment.
No durable competitive advantage detected. The business shows limited evidence of pricing power, consistent returns, or capital efficiency.
"Market is optimistic — be cautious and ensure you have a margin of safety"
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
