Enterprise Value (EV)
Current Enterprise Value (EV)
Devon Energy Corp., current enterprise value calculation
| Current share price (P) | $44.18 |
| No. shares of common stock outstanding | 640,700,000 |
| US$ in millions | |
| Common equity (market value)1 | 28,306) |
| Add: Noncontrolling interests (per books) | 129) |
| Total equity | 28,435) |
| Add: Short-term debt (per books) | 251) |
| Add: Current finance lease liabilities (per books) | 8) |
| Add: Long-term debt (per books) | 6,189) |
| Add: Long-term finance lease liabilities (per books) | 249) |
| Total equity and debt | 35,132) |
| Less: Cash, cash equivalents and restricted cash | 1,454) |
| Enterprise value (EV) | 33,678) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 44.18 × 640,700,000
Historical Enterprise Value (EV)
Devon Energy Corp., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Devon Energy Corp. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 57.23 × 654,000,000
The enterprise value exhibited significant volatility between 2018 and 2022, characterized by an initial contraction followed by a period of substantial expansion. A decline is observed from 2018 to 2019, with the enterprise value dropping from 16,800 million to 11,514 million. This downward trend reversed in 2020, leading into a sharp acceleration in 2021, where the value more than doubled to reach 40,370 million, eventually peaking at 42,800 million by the end of 2022.
- Correlation Between Market Equity and Enterprise Value
- A strong positive correlation exists between the market value of common equity and the total enterprise value. The surge in market capitalization from 14,626 million in 2020 to 35,767 million in 2021 served as the primary driver for the corresponding increase in enterprise value. This indicates that the growth in overall company valuation was predominantly fueled by equity market appreciation rather than an increase in debt levels.
- Capital Structure Dynamics
- Total equity and debt increased from 19,214 million in 2018 to 44,254 million in 2022. Throughout the analyzed period, the enterprise value remained closely aligned with the total equity and debt figures, suggesting a relatively stable relationship between the company's total capital employed and its market-based enterprise valuation.
- Valuation Growth Velocity
- The most aggressive growth phase occurred between 2020 and 2021, during which the enterprise value expanded by approximately 136%. Following this spike, the growth rate moderated significantly in 2022, with the enterprise value increasing by roughly 6% to reach 42,800 million, suggesting a period of valuation stabilization after the rapid expansion of the previous year.
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