Should You Buy Devon Energy Corp (DVN) Stock Monday?

InvestorsObserver gives Devon Energy Corp (DVN) a weak valuation score of 8 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. DVN currently holds a better value than 8% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

DVN gets a 8 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DVN!

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Metrics Analysis

DVN has a trailing twelve month Price to Earnings (PE) ratio of 4.32. The historical average of roughly 15 shows a good value for DVN stock as investors are paying lower share prices relative to the company's earnings. DVN's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 5.81 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. DVN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.2. The market is currently undervaluing DVN in relation to its projected growth due to the PEG ratio being below the fair market value of 1. DVN's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

DVN's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. DVN's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on Devon Energy Corp (DVN) stock.