--- title: Diamondback Energy (FANG) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/fang ticker: FANG as_of: 2026-10-17 sector: Energy industry: Oil & Gas Exploration & Production --- # Diamondback Energy (FANG) Diamondback Energy (FANG) closed at $203.95 on Oct 16, 2026, undervalued by 57% vs its model value of $478.98 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $203.95 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $478.98 | | Price vs model | undervalued by 57% vs model | | Range of that model | $278.06 – $1,142.58 | | Market value | $57.1B | | P/E (fiscal 2025) | 35.6 | | Net margin (fiscal 2025) | 11.1% | | Free cash flow (fiscal 2025) | $5.2B | | Dividend yield (trailing twelve months) | 2.08% | | Beta | 0.41 | | Cost of capital (WACC) | 6.92% | | Business classification | Cyclical (High revenue growth (~34% recent), Moderate margins (11% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (9.2%)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Highest free cash flow yield | #44 | 9.2% | https://sweetvaluelab.com/lists/highest-free-cash-flow-yield | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 2.08% | | Dividends per share, last 12 months | $4.25 | | Dividends / free cash flow (fiscal 2025) | 22.1% | | Raised | 7+ years in a row | | Growth over 5 years | 21.2% a year | | Latest payment | $1.10, ex-date Aug 13, 2026, paid Aug 20, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Aug 11, 2021 | $1.63 | | To Aug 15, 2022 | $7.20 | | To Aug 9, 2023 | $6.88 | | To Aug 15, 2024 | $10.76 | | To Aug 14, 2025 | $3.90 | | Trailing twelve months (to Aug 13, 2026) | $4.25 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $478.98 | $278.06 | $1,142.58 | | DCF · Perpetuity growth · 10y | cross check | $425.46 | $259.91 | $976.08 | | DCF · EBITDA exit · 5y | cross check | $225.25 | $78.36 | $400.46 | | DCF · EBITDA exit · 10y | cross check | $249.06 | $133.11 | $408.58 | | P/E · peers | cross check | $146.00 | $131.78 | $209.98 | | P/E · own history | cross check | $140.94 | $121.36 | $158.50 | | PEG | sanity check | $543.19 | $543.19 | $543.19 | | EV/EBITDA · peers | cross check | $83.32 | $38.91 | $127.63 | | EV/Revenue · peers | cross check | $112.33 | $40.94 | $154.84 | | Earnings power value | cross check | $16.89 | $5.01 | $35.35 | | Dividend discount | cross check | $108.38 | $71.03 | $196.24 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 19 open-market sales ($3.8B); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 5, 2026 | Meloy Charles Alvin | Director | Open-market sell (10b5-1 plan) | 6,354 | $1.2M | | Oct 5, 2026 | Meloy Charles Alvin | Director | Open-market sell (10b5-1 plan) | 6,476 | $1.2M | | Oct 5, 2026 | Meloy Charles Alvin | Director | Open-market sell (10b5-1 plan) | 20,503 | $3.8M | | Sep 16, 2026 | SGF FANG Holdings, LP, Greth Lyndal | 10% Owner | Open-market sell | 9,079,675 | $1.9B | | Sep 16, 2026 | SGF FANG Holdings, LP, Greth Lyndal | 10% Owner | Open-market sell | 9,079,675 | $1.9B | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Oct 8, 2026 | 8-K | 2.02 Results of Operations (Earnings) | https://www.sec.gov/Archives/edgar/data/1539838/000153983826000177/fang-20261008.htm | | Sep 30, 2026 | 8-K | 1.01 Entry into a Material Agreement; 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1539838/000110465926112325/tm2626600d1_8k.htm | | Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1539838/000153983826000142/fang-20260630.htm | | Aug 3, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1539838/000153983826000137/fang-20260803.htm | | Jul 13, 2026 | 8-K | 2.02 Results of Operations (Earnings) | https://www.sec.gov/Archives/edgar/data/1539838/000153983826000134/fang-20260713.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Yacktman | 2026-06-30 | 1,014,114 | $178.3M | | Arnold Van Den Berg | 2026-06-30 | 81,302 | $14.3M | 2 tracked managers in all. ## About Diamondback Energy, Inc. operates as an independent enterprise focused on oil and natural gas. Its core business involves the acquisition, development, exploration, and production of unconventional and onshore hydrocarbon reserves, predominantly located within the Permian Basin across West Texas and New Mexico. The company's development efforts primarily target significant geological formations, including the Spraberry and Wolfcamp in the Midland Basin, as well as the Wolfcamp and Bone Spring within the Delaware Basin – both crucial components of the broader Permian. As of December 31, 2021, Diamondback Energy's asset base included approximately 524,700 gross acres under its control in the Permian Basin. At that time, its estimated proved oil and natural gas reserves amounted to 1,788,991 thousand barrels of crude oil equivalent. The company also maintained working interests in 5,289 gro… --- Source: https://sweetvaluelab.com/stocks/fang (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.