Is Diamondback Energy, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Diamondback Energy, Inc. has moved from very attractive to fair. Based on the analysis, the company appears to be fairly valued at this time. The P/E ratio stands at 10, while the EV to EBITDA is 6.05, and the dividend yield is notably high at 228.17%.
In comparison to its peers, Diamondback's P/E ratio is lower than ConocoPhillips, which is considered expensive at 22.15, and similar to EOG Resources, Inc., which has a P/E of 10.43. Additionally, Devon Energy Corp. is also fairly valued with a P/E of 7.50. Despite a recent decline in stock price, with a year-to-date return of -13.84% compared to the S&P 500's 2.44%, the overall valuation suggests that Diamondback Energy is positioned reasonably within its sector.