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Diamondback Energy (NAS:FANG) GF Value Rank

: 3 (As of Today)
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Diamondback Energy has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Oil & Gas E&P subindustry, Diamondback Energy's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diamondback Energy GF Value Rank Distribution

For the Oil & Gas industry and Energy sector, Diamondback Energy's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Diamondback Energy GF Value Rank Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's GF Value Rank provided by Please click on the following links to see related term pages.

Diamondback Energy (NAS:FANG) Business Description

Diamondback Energy logo
Traded in Other Exchanges
500 West Texas Avenue, Suite 1200, Midland, TX, USA, 79701
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2022, the company reported net proven reserves of 2 billion barrels of oil equivalent. Net production averaged about 386,000 barrels per day in 2022, at a ratio of 58% oil, 21% natural gas liquids, and 21% natural gas.
Frank D. Tsuru director 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Rebecca A Klein director 1411 E MISSION AVE, SPOKANE WA 99202
Vincent K Brooks director 900 POLO CLUB DRIVE, AUSTIN TX 78737
Daniel N Wesson officer: Exec. VP - Operations 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Matt Zmigrosky officer: Exec. VP and General Counsel 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Melanie Montague Trent director 2800 POST OAK BLVD., SUITE 5450, HOUSTON TX 7056
Paul Molnar officer: Exec. VP Exploration & Bus Dev 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Van't Hof Matthew Kaes officer: Sr. VP - Strategy & Corp Dev 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Michael L. Hollis officer: President and COO 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Randall J Holder officer: Exec. VP, Gen. Counsel, Sec. 5330 E 31ST STREET, TULSA OK 74135
Jennifer Soliman officer: Sr. VP and Chief HR Officer 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Russell Pantermuehl officer: Exec. VP Reservoir Engineering 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Teresa L. Dick officer: CFO, Exec. VP, Assist. Sec. 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Travis D. Stice director, officer: Chief Executive Officer 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701