Devon Energy Current Valuation vs. Return On Equity
| D1VN34 Stock | BRL 194.40 1.80 0.92% |
For Devon Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Devon Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Devon Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Devon Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Devon Energy over time as well as its relative position and ranking within its peers.
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Devon Energy Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Devon Energy's current stock value. Our valuation model uses many indicators to compare Devon Energy value to that of its competitors to determine the firm's financial worth. Devon Energy is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Devon Energy is about 387,300,762,693 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Devon Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Devon Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Devon Current Valuation vs. Competition
Devon Energy is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Oil & Gas E&P industry is currently estimated at about 1.06 Trillion. Devon Energy totals roughly 244.93 Billion in current valuation claiming about 23% of all equities under Oil & Gas E&P industry.
Devon Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Devon Energy |
| = | 244.93 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Devon Energy |
| = | 0.63 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Devon Return On Equity Comparison
Devon Energy is currently under evaluation in return on equity category among its peers.
Devon Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Devon Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Devon Energy will eventually generate negative long term returns. The profitability progress is the general direction of Devon Energy's change in net profit over the period of time. It can combine multiple indicators of Devon Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma. DEVON ENERGYDRN operates under Oil Gas EP classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 1400 people.
Devon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Devon Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Devon Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Devon Energy's important profitability drivers and their relationship over time.
Use Devon Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Devon Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Devon Energy will appreciate offsetting losses from the drop in the long position's value.Devon Energy Pair Trading
Devon Energy Pair Trading Analysis
The ability to find closely correlated positions to Devon Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Devon Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Devon Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Devon Energy to buy it.
The correlation of Devon Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Devon Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Devon Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Devon Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Devon Energy position
In addition to having Devon Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Devon Stock
When determining whether Devon Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Devon Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Devon Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Devon Energy Stock:Check out Investing Opportunities. For information on how to trade Devon Stock refer to our How to Trade Devon Stock guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project Devon Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Devon Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Devon Energy's income statement, its balance sheet, and the statement of cash flows.