Loading...
Back to narrative

ACDC: Lower Discount Rate Will Still Leave Shares Looking Overvalued

Update shared on 11 Dec 2025

n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
-45.5%
7D
-13.2%

Analysts have modestly raised their price target on ProFrac Holding to align more closely with their updated valuation, citing a lower required discount rate and slightly more favorable long term profitability and earnings multiple assumptions.

Valuation Changes

  • Fair Value Estimate: Unchanged at 3.9, indicating no revision to the core intrinsic value assessment.
  • Discount Rate: Fallen moderately from 10.48 percent to 9.66 percent, reflecting a lower perceived risk or required return.
  • Revenue Growth: Effectively unchanged at approximately negative 2.65 percent, suggesting a stable outlook for top line trends.
  • Net Profit Margin: Essentially flat at about 6.96 percent, implying no material change to long term profitability assumptions.
  • Future P/E: Eased slightly from 9.24x to 9.04x, indicating a marginally lower valuation multiple applied to future earnings.

Have other thoughts on ProFrac Holding?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.