Is Devon Energy Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Devon Energy Corp. moved from expensive to fair. The company is currently fairly valued based on its valuation ratios, which include a P/E ratio of 7, an EV to EBITDA ratio of 3.76, and a Price to Book Value of 1.43. In comparison, peers such as Occidental Petroleum Corp. have a much higher P/E ratio of 13.39, indicating that Devon is more attractively priced relative to its industry.
Despite its fair valuation, Devon Energy Corp. has shown mixed performance against the S&P 500, with a year-to-date return of 6.97% compared to the index's 12.22%, and a one-year return of -13.28% versus 17.14% for the S&P 500. This suggests that while the stock is fairly valued, it has underperformed in the short term relative to the broader market.