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Diamondback Energy (BSP:F1AN34) E10 : R$6.72 (As of Mar. 2024)


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What is Diamondback Energy E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Diamondback Energy's adjusted earnings per share data for the three months ended in Mar. 2024 was R$10.657. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is R$6.72 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Diamondback Energy's average E10 Growth Rate was 89.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-05-21), Diamondback Energy's current stock price is R$501.50. Diamondback Energy's E10 for the quarter that ended in Mar. 2024 was R$6.72. Diamondback Energy's Shiller PE Ratio of today is 74.63.

During the past 13 years, the highest Shiller PE Ratio of Diamondback Energy was 3375.50. The lowest was 48.77. And the median was 70.81.


Diamondback Energy E10 Historical Data

The historical data trend for Diamondback Energy's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diamondback Energy E10 Chart

Diamondback Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -5.63 -2.94 3.87 7.64

Diamondback Energy Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.62 5.12 6.51 7.64 6.72

Competitive Comparison of Diamondback Energy's E10

For the Oil & Gas E&P subindustry, Diamondback Energy's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diamondback Energy's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's Shiller PE Ratio falls into.



Diamondback Energy E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Diamondback Energy's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=10.657/131.7762*131.7762
=10.657

Current CPI (Mar. 2024) = 131.7762.

Diamondback Energy Quarterly Data

per share eps CPI Adj_EPS
201406 0.604 100.560 0.791
201409 0.923 100.428 1.211
201412 2.285 99.070 3.039
201503 0.157 99.621 0.208
201506 -5.368 100.684 -7.026
201509 -4.684 100.392 -6.148
201512 -5.433 99.792 -7.174
201603 -0.851 100.470 -1.116
201606 -3.714 101.688 -4.813
201609 -0.049 101.861 -0.063
201612 0.537 101.863 0.695
201703 2.283 102.862 2.925
201706 2.653 103.349 3.383
201709 1.159 104.136 1.467
201712 1.911 104.011 2.421
201803 2.705 105.290 3.385
201806 4.186 106.317 5.188
201809 3.266 106.507 4.041
201812 4.854 105.998 6.034
201903 0.115 107.251 0.141
201906 4.068 108.070 4.960
201909 4.655 108.329 5.663
201912 -6.239 108.420 -7.583
202003 -4.202 108.902 -5.085
202006 -39.328 108.767 -47.648
202009 -19.035 109.815 -22.842
202012 -12.039 109.897 -14.436
202103 3.747 111.754 4.418
202106 4.274 114.631 4.913
202109 9.370 115.734 10.669
202112 15.664 117.630 17.548
202203 10.824 121.301 11.759
202206 20.014 125.017 21.096
202209 17.618 125.227 18.539
202212 14.740 125.222 15.512
202303 10.105 127.348 10.456
202306 7.402 128.729 7.577
202309 12.520 129.860 12.705
202312 13.082 129.419 13.320
202403 10.657 131.776 10.657

Add all the adjusted EPS together and divide 10 will get our e10.


Diamondback Energy  (BSP:F1AN34) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Diamondback Energy's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=501.50/6.72
=74.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Diamondback Energy was 3375.50. The lowest was 48.77. And the median was 70.81.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Diamondback Energy E10 Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Diamondback Energy (BSP:F1AN34) Business Description

Traded in Other Exchanges
Address
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.

Diamondback Energy (BSP:F1AN34) Headlines

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