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 financial data reveals distinct trends in the equity and overall valuation metrics over the five-year period analyzed. A detailed examination offers insights into the company's market valuation, capital structure, and enterprise value progression.
- Common Equity (Market Value)
- The market value of common equity experienced volatility between 2018 and 2022. It started at $13,267 million in 2018, then declined to a low of $8,699 million in 2019. Following this dip, there was a substantial recovery and growth through the subsequent years, reaching a peak of $37,428 million in 2022. This pattern suggests considerable fluctuations in investor perception or market conditions within the period, with significant positive momentum post-2019.
- Total Equity
- Total equity followed a trajectory similar to common equity, though values were marginally higher. From $13,267 million in 2018, it slightly increased to $8,817 million in 2019 despite the previous drop in market value, then rose consistently reaching $37,557 million in 2022. The movement indicates a strengthening of the company's net asset base, particularly after 2019, indicative of enhanced retained earnings, capital injections, or revaluation effects contributing to equity growth.
- Total Equity and Debt
- The aggregate of equity and debt showed a steady upward trend from $19,214 million in 2018 to $44,254 million in 2022. The increase was especially pronounced after 2019, with the figure more than doubling by the final year. This growth points to increased leverage or expanded financing activities, signifying either strategic capital structure adjustments or funding for growth initiatives and asset acquisitions.
- Enterprise Value (EV)
- Enterprise value mirrored the trends observed in total equity and debt, rising from $16,800 million in 2018 to $42,800 million in 2022. After a dip in 2019 to $11,514 million, it rebounded strongly, with major increases in 2021 and 2022. The growth in EV reflects both market capitalization improvements and increased net debt, underscoring a rise in overall firm valuation and potentially enhanced operational prospects or market confidence in the company's future cash flows.
Overall, the data illustrates a period of initial decline in 2019 across market value and firm valuation metrics, followed by substantial recovery and growth extending through to 2022. The consistent increase in both equity and debt measures suggests an active capital management approach, likely aimed at leveraging growth opportunities. In parallel, the rise in enterprise value confirms improved market perception and possibly stronger financial performance during the latter years under review.