Devon Energy engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States and Canada. The company was founded in 1971 and is based in Oklahoma City, Oklahoma.
DVN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Devon Energy Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Devon Energy Corp ranked in the 2th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Devon Energy Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.42% -- higher than only 2.65% of stocks in our DCF forecasting set.
Devon Energy Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.59. This coverage rate is greater than that of merely 8.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 72.13% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DVN, try BRY, EXTN, SM, SNP, and CCLP.