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DCF valuation

What is Diversified Energy Co worth?

With the base-case assumptions below, a discounted cash flow model on Diversified Energy Co's reported free cash flow gives $86.42 per share. The share price was $13.79 on September 25, 2026, 84% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$280M
Cash
$8.2M
balance sheet of June 30, 2026
Debt
$2.82B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
74,478,592
Revenue growth per year, last 4 years
16.1%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$37.68+173%
Base15.0%9.0%2.5%9.0%$86.42+527%
Bull20.0%11.5%3.0%8.0%$177.18+1,185%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$123.32$134.83$148.90$166.48$189.08
8.0%$95.60$103.06$111.88$122.47$135.40
9.0%$75.43$80.53$86.42$93.29$101.40
10.0%$60.14$63.76$67.88$72.58$78.00
11.0%$48.17$50.83$53.80$57.15$60.94

Where the presets come from

Base: years 1 to 5 grow at Diversified Energy Co's revenue growth rate over the last 4 fiscal years (16.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Diversified Energy Co company page