Devon Energy Price To Earning vs. EBITDA
| DVN Stock | USD 38.70 0.40 1.04% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.66 | 0.3435 |
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For Devon Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Devon Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Devon Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Devon Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Devon Energy over time as well as its relative position and ranking within its peers.
Devon |
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Devon Energy. If investors know Devon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Devon Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.09) | Dividend Share 2 | Earnings Share 5.4 | Revenue Per Share 23.117 | Quarterly Revenue Growth (0.10) |
The market value of Devon Energy is measured differently than its book value, which is the value of Devon that is recorded on the company's balance sheet. Investors also form their own opinion of Devon Energy's value that differs from its market value or its book value, called intrinsic value, which is Devon Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Devon Energy's market value can be influenced by many factors that don't directly affect Devon Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Devon Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Devon Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Devon Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Devon Energy EBITDA vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Devon Energy's current stock value. Our valuation model uses many indicators to compare Devon Energy value to that of its competitors to determine the firm's financial worth. Devon Energy is rated # 5 in price to earning category among its peers. It is rated # 4 in ebitda category among its peers totaling about 1,039,444,444 of EBITDA per Price To Earning. At this time, Devon Energy's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Devon Energy's earnings, one of the primary drivers of an investment's value.Devon Energy's Earnings Breakdown by Geography
Devon EBITDA vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Devon Energy |
| = | 7.20 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Devon Energy |
| = | 7.48 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Devon EBITDA Comparison
Devon Energy is currently under evaluation in ebitda category among its peers.
Devon Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Devon Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Devon Energy will eventually generate negative long term returns. The profitability progress is the general direction of Devon Energy's change in net profit over the period of time. It can combine multiple indicators of Devon Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -124 M | -117.8 M | |
| Operating Income | 2.3 B | 2.5 B | |
| Income Before Tax | 4.6 B | 4.9 B | |
| Total Other Income Expense Net | 2.3 B | 2.4 B | |
| Net Income | 3.7 B | 3.9 B | |
| Income Tax Expense | 841 M | 883 M | |
| Net Income Applicable To Common Shares | 5.4 B | 5.7 B | |
| Net Income From Continuing Ops | 3.8 B | 4 B | |
| Non Operating Income Net Other | 50.6 M | 44.8 M | |
| Interest Income | 59 M | 56 M | |
| Net Interest Income | -304 M | -319.2 M | |
| Change To Netincome | 2.2 B | 2.2 B | |
| Net Income Per Share | 5.86 | 6.16 | |
| Income Quality | 1.75 | 1.83 | |
| Net Income Per E B T | 0.81 | 0.61 |
Devon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Devon Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Devon Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Devon Energy's important profitability drivers and their relationship over time.
Use Devon Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Devon Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Devon Energy will appreciate offsetting losses from the drop in the long position's value.Devon Energy Pair Trading
Devon Energy Pair Trading Analysis
The ability to find closely correlated positions to Devon Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Devon Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Devon Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Devon Energy to buy it.
The correlation of Devon Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Devon Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Devon Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Devon Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Devon Energy position
In addition to having Devon Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Recycling Thematic Idea Now
Recycling
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recycling Theme or any other thematic opportunities.
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Check out Investing Opportunities. To learn how to invest in Devon Stock, please use our How to Invest in Devon Energy guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Devon Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Devon Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Devon Energy's income statement, its balance sheet, and the statement of cash flows.