Drilling Tools International Corporation

NasdaqCM:DTI Stock Report

Market Cap: US$150.3m

Drilling Tools International Valuation

Is DTI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DTI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DTI ($5.53) is trading below our estimate of fair value ($80.67)

Significantly Below Fair Value: DTI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DTI?

Other financial metrics that can be useful for relative valuation.

DTI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA3.9x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does DTI's PE Ratio compare to its peers?

The above table shows the PE ratio for DTI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.2x
GEOS Geospace Technologies
7.8xn/aUS$128.3m
ESOA Energy Services of America
11.7x-18.1%US$118.6m
RNGR Ranger Energy Services
14.4x38.4%US$248.7m
NGS Natural Gas Services Group
26.7x36.2%US$251.2m
DTI Drilling Tools International
13.5x38.4%US$150.3m

Price-To-Earnings vs Peers: DTI is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (15.2x).


Price to Earnings Ratio vs Industry

How does DTI's PE Ratio compare vs other companies in the US Energy Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DTI is good value based on its Price-To-Earnings Ratio (13.5x) compared to the US Energy Services industry average (15x).


Price to Earnings Ratio vs Fair Ratio

What is DTI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DTI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: DTI is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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