Patterson-UTI Energy, Inc.

NasdaqGS:PTEN Stock Report

Mkt Cap: US$3.5b

We’ve recently updated our valuation analysis.

Patterson-UTI Energy Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PTEN 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/Revenue1.9x
Enterprise Value/EBITDA8.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PTEN's PS Ratio compare to its peers?

The above table shows the PS ratio for PTEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.4x
RIG Transocean
1.7x15.3%US$4.5b
NE Noble
5.7x30.2%US$5.4b
HP Helmerich & Payne
2.4x11.5%US$5.0b
VAL Valaris
3.8x21.0%US$5.6b
PTEN Patterson-UTI Energy
1.5x12.5%US$3.5b

Price-To-Sales vs Peers: PTEN is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (3.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a36.3%
n/an/an/a

Price-To-Sales vs Industry: PTEN is expensive based on its Price-To-Sales Ratio (1.5x) compared to the US Energy Services industry average (1x)


Price to Sales Ratio vs Fair Ratio

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

PTEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: PTEN is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Share Price vs Fair Value

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

Below Fair Value: PTEN ($16.12) is trading below our estimate of fair value ($41.27)

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


Analyst Price Targets

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

The above table shows the analyst PTEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$16.12
US$22.77
+41.2%
15.5%US$28.00US$15.00n/a15
Jan ’24US$16.84
US$22.80
+35.4%
13.9%US$28.00US$15.00n/a15
Dec ’23US$17.43
US$22.43
+28.7%
13.1%US$26.00US$15.00n/a14
Nov ’23US$18.01
US$21.47
+19.2%
16.1%US$26.00US$12.00n/a15
Oct ’23US$11.68
US$20.79
+78.0%
16.0%US$26.00US$12.00n/a14
Sep ’23US$14.28
US$20.64
+44.6%
16.2%US$26.00US$12.00n/a14
Aug ’23US$16.40
US$20.60
+25.6%
16.3%US$26.00US$12.00n/a15
Jul ’23US$15.13
US$19.82
+31.0%
17.1%US$24.00US$9.00n/a15
Jun ’23US$18.89
US$19.28
+2.1%
15.7%US$22.75US$9.00n/a15
May ’23US$16.44
US$18.02
+9.6%
19.3%US$21.00US$9.00n/a15
Apr ’23US$15.85
US$14.75
-6.9%
18.7%US$19.00US$9.00n/a14
Mar ’23US$14.16
US$13.00
-8.2%
13.8%US$16.00US$9.00n/a15
Feb ’23US$10.58
US$11.25
+6.3%
12.1%US$13.00US$9.00n/a15
Jan ’23US$8.45
US$10.87
+28.6%
13.0%US$13.00US$8.00US$16.8415
Dec ’22US$6.94
US$10.57
+52.3%
12.5%US$13.00US$8.00US$17.4315
Nov ’22US$8.84
US$10.48
+18.6%
13.0%US$13.00US$8.00US$18.0115
Oct ’22US$9.44
US$9.43
-0.1%
18.1%US$13.00US$7.00US$11.6814
Sep ’22US$7.61
US$9.50
+24.8%
18.2%US$13.00US$7.00US$14.2813
Aug ’22US$8.02
US$9.27
+15.6%
19.3%US$12.00US$6.25US$16.4013
Jul ’22US$10.26
US$8.75
-14.7%
28.1%US$14.00US$5.60US$15.1313
Jun ’22US$8.92
US$7.68
-14.0%
29.0%US$12.00US$4.50US$18.8914
May ’22US$6.76
US$6.97
+3.1%
28.2%US$12.00US$4.50US$16.4415
Apr ’22US$7.35
US$6.65
-9.5%
30.7%US$12.00US$4.50US$15.8515
Mar ’22US$7.91
US$5.77
-27.1%
26.5%US$9.00US$3.00US$14.1616
Feb ’22US$6.36
US$5.39
-15.3%
27.3%US$8.00US$3.00US$10.5815
Jan ’22US$5.26
US$4.53
-13.9%
28.4%US$7.00US$2.30US$8.4519

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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