A Fresh Look at National Energy Services Reunited (NasdaqCM:NESR) Valuation After New Record Guidance and Revenue Targets

National Energy Services Reunited (NasdaqCM:NESR) released its quarterly earnings and set out new revenue guidance. The company laid out expectations for a record finish to 2025 and substantial growth into 2026 despite recent declines.

See our latest analysis for National Energy Services Reunited.

After a string of strong contract wins and upbeat revenue guidance, momentum has clearly shifted for National Energy Services Reunited. The share price has surged nearly 60% in the past three months and is up more than 57% year-to-date. The one-year total shareholder return sits just below that at 56.7%. This pattern shows investors are increasingly optimistic about the company's ability to deliver on its long-term growth plans even after some near-term revenue dips.

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With shares trading at a substantial discount to analyst targets and impressive growth projections on the horizon, is National Energy Services Reunited presenting a real buying opportunity, or is future growth already priced in?

Most Popular Narrative: 30% Undervalued

Compared to its last close at $13.79, the current narrative assigns a fair value nearly one-third higher for National Energy Services Reunited. That sets the stage for a valuation built on significant upside potential and ambitious recovery projections.

NESR is poised to benefit from robust long-term global energy demand growth, particularly in emerging markets and the Global South, as evidenced by expanding rig counts and project backlogs across Kuwait, Saudi Arabia, North Africa, and Iraq. This is likely to drive sustained revenue growth and backlog visibility.

Read the complete narrative.

Curious how bullish estimates of future margins and rising revenue combine with record-setting earnings targets? The underlying story involves aggressive growth assumptions, rising profitability forecasts, and a profit multiple that aims to outpace the sector. Interested in the details driving that impressive fair value? Click through to uncover the financial calculations shaping this consensus target.

Result: Fair Value of $19.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued dependence on MENA oil contracts and the accelerating global shift toward renewables could challenge revenue growth and long-term market stability.

Find out about the key risks to this National Energy Services Reunited narrative.

Another View: Multiples Tell a Different Story

While the fair value discussion paints National Energy Services Reunited as undervalued, its current price-to-earnings ratio of 19.8x is actually higher than both the US Energy Services industry average at 16.4x and the peer average at 15.6x. However, it stands below the fair ratio of 23.4x, which is where the market could migrate. This premium could signal strong market expectations, but it also adds an element of valuation risk if those high hopes are not met. Are investors leaning too far ahead of the fundamentals, or is the market betting on a sustained turnaround?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own National Energy Services Reunited Narrative

If you see the story differently or want to dig into the numbers yourself, crafting your own perspective is quick and straightforward. Go ahead and Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding National Energy Services Reunited.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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