Price to Earnings (P/E)
since 2005
Calculation
Devon Energy Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss) applicable to common stockholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2023 | 6.22 | = | 57.23 | ÷ | 9.20 | 9.20 | = | 6,015 | ÷ | 654,000,000 | |
| Feb 16, 2022 | 12.71 | = | 53.85 | ÷ | 4.24 | 4.24 | = | 2,813 | ÷ | 664,200,000 | |
| Feb 17, 2021 | — | = | 21.73 | ÷ | -3.98 | -3.98 | = | -2,680 | ÷ | 673,100,000 | |
| Feb 19, 2020 | — | = | 22.72 | ÷ | -0.93 | -0.93 | = | -355 | ÷ | 382,900,000 | |
| Feb 20, 2019 | 4.33 | = | 30.27 | ÷ | 6.99 | 6.99 | = | 3,064 | ÷ | 438,300,000 | |
| Feb 21, 2018 | 17.91 | = | 30.57 | ÷ | 1.71 | 1.71 | = | 898 | ÷ | 526,100,000 | |
| Feb 15, 2017 | — | = | 44.23 | ÷ | -6.29 | -6.29 | = | -3,302 | ÷ | 524,600,000 | |
| Feb 17, 2016 | — | = | 20.33 | ÷ | -32.75 | -32.75 | = | -14,454 | ÷ | 441,300,000 | |
| Feb 20, 2015 | 16.33 | = | 63.82 | ÷ | 3.91 | 3.91 | = | 1,607 | ÷ | 411,100,000 | |
| Feb 28, 2014 | — | = | 64.42 | ÷ | -0.05 | -0.05 | = | -20 | ÷ | 407,400,000 | |
| Feb 21, 2013 | — | = | 54.88 | ÷ | -0.51 | -0.51 | = | -206 | ÷ | 406,000,000 | |
| Feb 24, 2012 | 6.46 | = | 75.19 | ÷ | 11.64 | 11.64 | = | 4,704 | ÷ | 404,100,000 | |
| Feb 25, 2011 | 8.48 | = | 90.35 | ÷ | 10.66 | 10.66 | = | 4,550 | ÷ | 427,000,000 | |
| Feb 25, 2010 | — | = | 68.81 | ÷ | -5.55 | -5.55 | = | -2,479 | ÷ | 446,800,000 | |
| Feb 27, 2009 | — | = | 43.67 | ÷ | -4.85 | -4.85 | = | -2,153 | ÷ | 443,800,000 | |
| Feb 28, 2008 | 13.10 | = | 106.04 | ÷ | 8.09 | 8.09 | = | 3,596 | ÷ | 444,390,145 | |
| Feb 28, 2007 | 10.30 | = | 65.70 | ÷ | 6.38 | 6.38 | = | 2,836 | ÷ | 444,461,491 | |
| Mar 3, 2006 | 9.20 | = | 60.81 | ÷ | 6.61 | 6.61 | = | 2,920 | ÷ | 441,865,011 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Devon Energy Corp. Annual Report.
The financial performance from 2006 to 2023 is characterized by significant volatility in both share price and earnings per share, leading to inconsistent Price to Earnings (P/E) ratios. A recurring pattern of cyclicality is evident, with multiple periods of negative earnings that render the P/E ratio inapplicable.
- Earnings Volatility and P/E Gaps
- Significant fluctuations in earnings per share (EPS) have resulted in numerous intervals where the P/E ratio cannot be calculated. Negative EPS was recorded in 2009, 2010, 2013, 2014, 2016, 2017, 2020, and 2021. The most severe contraction occurred in 2016, with EPS dropping to -32.75, correlating with a sharp decline in share price to 20.33.
- Valuation Trends
- During periods of profitability, the P/E ratio has exhibited wide variance. An upward trend was observed from 2006 to 2008, with the ratio increasing from 9.20 to 13.10. Following a period of instability, the ratio reached a peak of 17.91 in 2018 before experiencing a precipitous drop to 4.33 in 2019, despite an increase in EPS to 6.99. This suggests a significant compression in valuation multiples during that period.
- Share Price Correlation
- The share price peaked at 106.04 in 2008, coinciding with a P/E of 13.10. A long-term downward trend in share price was observed from 2011 (90.35) through 2021 (21.73). However, a recovery phase began in 2022, with the share price rising to 57.23 by 2023.
- Recent Performance Analysis
- The return to profitability in 2022 and 2023 is marked by a stabilization of the P/E ratio. The ratio shifted from 12.71 in 2022 to 6.22 in 2023. This decrease in the P/E ratio, occurring alongside a substantial increase in EPS from 4.24 to 9.20, indicates that earnings growth has outpaced the increase in share price in the most recent fiscal period.
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Comparison to Competitors
Devon Energy Corp., P/E, long-term trends, comparison to competitors
| Devon Energy Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Feb 15, 2023 | 6.22 | 8.71 | 7.07 | 8.01 |
| Feb 16, 2022 | 12.71 | 16.81 | 14.66 | 14.11 |
| Feb 17, 2021 | — | — | — | — |
| Feb 19, 2020 | — | 70.06 | 8.77 | 15.64 |
| Feb 20, 2019 | 4.33 | 15.30 | 12.60 | 16.15 |
| Feb 21, 2018 | 17.91 | 22.83 | — | 16.28 |
| Feb 15, 2017 | — | — | — | 42.80 |
| Feb 17, 2016 | — | 35.02 | — | 20.96 |
| Feb 20, 2015 | 16.33 | 10.61 | 12.03 | 11.56 |
| Feb 28, 2014 | — | 10.04 | 8.91 | 12.71 |
| Feb 21, 2013 | — | 8.61 | 8.49 | 8.94 |
| Feb 24, 2012 | 6.46 | 7.96 | 7.60 | 10.03 |
| Feb 25, 2011 | 8.48 | 10.77 | 9.89 | 13.89 |
| Feb 25, 2010 | — | 13.81 | 14.78 | 15.92 |
| Feb 27, 2009 | — | 5.29 | — | 7.42 |
| Feb 28, 2008 | 13.10 | 9.89 | 10.59 | 11.78 |
| Feb 28, 2007 | 10.30 | 8.63 | 7.09 | 10.33 |
| Mar 3, 2006 | 9.20 | 9.04 | 6.31 | 10.03 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Devon Energy Corp., P/E, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Devon Energy Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Feb 15, 2023 | 6.22 | 8.08 |
| Feb 16, 2022 | 12.71 | 15.11 |
| Feb 17, 2021 | — | — |
| Feb 19, 2020 | — | 20.13 |
| Feb 20, 2019 | 4.33 | 15.32 |
| Feb 21, 2018 | 17.91 | 21.22 |
| Feb 15, 2017 | — | 162.35 |
| Feb 17, 2016 | — | 33.10 |
| Feb 20, 2015 | 16.33 | 11.30 |
| Feb 28, 2014 | — | 11.25 |
| Feb 21, 2013 | — | 8.78 |
| Feb 24, 2012 | 6.46 | 8.96 |
| Feb 25, 2011 | 8.48 | 12.17 |
| Feb 25, 2010 | — | 15.12 |
| Feb 27, 2009 | — | 9.95 |
| Feb 28, 2008 | 13.10 | 11.08 |
| Feb 28, 2007 | 10.30 | 9.23 |
| Mar 3, 2006 | 9.20 | 9.02 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Devon Energy Corp., P/E, long-term trends, comparison to industry (energy)
| Devon Energy Corp. | Energy | |
|---|---|---|
| Feb 15, 2023 | 6.22 | 8.54 |
| Feb 16, 2022 | 12.71 | 15.67 |
| Feb 17, 2021 | — | — |
| Feb 19, 2020 | — | 37.93 |
| Feb 20, 2019 | 4.33 | 15.94 |
| Feb 21, 2018 | 17.91 | 26.50 |
| Feb 15, 2017 | — | 354.83 |
| Feb 17, 2016 | — | 33.85 |
| Feb 20, 2015 | 16.33 | 11.97 |
| Feb 28, 2014 | — | 11.81 |
| Feb 21, 2013 | — | 9.43 |
| Feb 24, 2012 | 6.46 | 9.63 |
| Feb 25, 2011 | 8.48 | 13.24 |
| Feb 25, 2010 | — | 15.83 |
| Feb 27, 2009 | — | 9.90 |
| Feb 28, 2008 | 13.10 | 11.66 |
| Feb 28, 2007 | 10.30 | 9.76 |
| Mar 3, 2006 | 9.20 | 9.78 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).