Patterson-UTI Energy, Inc.

NasdaqGS:PTEN Stock Report

Market Cap: US$3.4b

Patterson-UTI Energy Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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 ($8.68) is trading below our estimate of fair value ($17.74)

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

Key Valuation Metric

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

Key metric: As PTEN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for PTEN. This is calculated by dividing PTEN's market cap by their current revenue.
What is PTEN's PS Ratio?
PS Ratio0.6x
SalesUS$5.80b
Market CapUS$3.38b

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
NE Noble
2.1x16.4%US$5.7b
HP Helmerich & Payne
1.3x11.3%US$3.6b
VAL Valaris
1.6x11.9%US$3.5b
SDRL Seadrill
1.8x10.8%US$2.7b
PTEN Patterson-UTI Energy
0.6x1.0%US$3.4b

Price-To-Sales vs Peers: PTEN is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

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

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
KLXE KLX Energy Services Holdings
0.1x3.4%US$106.56m
NINE Nine Energy Service
0.1x3.0%US$61.43m
ENSV Enservco
0.1xn/aUS$2.91m
ICDI Independence Contract Drilling
0.006x6.9%US$1.05m
PTEN 0.6xIndustry Avg. 1.0xNo. of Companies9PS00.61.21.82.43+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PTEN is good value based on its Price-To-Sales Ratio (0.6x) 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 Ratio0.6x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: PTEN is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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$8.68
US$10.91
+25.7%
12.8%US$14.00US$9.00n/a17
Nov ’25US$7.42
US$11.74
+58.2%
19.4%US$18.00US$9.00n/a17
Oct ’25US$7.92
US$13.32
+68.2%
14.6%US$18.00US$10.00n/a17
Sep ’25US$9.21
US$13.76
+49.5%
12.8%US$19.00US$12.00n/a17
Aug ’25US$10.21
US$14.14
+38.5%
12.0%US$19.00US$12.00n/a18
Jul ’25US$10.09
US$15.28
+51.4%
10.6%US$19.00US$13.00n/a18
Jun ’25US$11.02
US$15.44
+40.1%
9.9%US$19.00US$13.00n/a18
May ’25US$10.50
US$15.94
+51.9%
8.5%US$19.00US$14.00n/a18
Apr ’25US$11.75
US$16.08
+36.9%
8.7%US$19.00US$13.00n/a18
Mar ’25US$11.74
US$16.14
+37.5%
9.9%US$19.00US$12.00n/a18
Feb ’25US$10.84
US$16.15
+49.0%
10.4%US$19.00US$12.00n/a17
Jan ’25US$10.80
US$17.05
+57.9%
11.0%US$21.00US$12.00n/a19
Dec ’24US$11.77
US$17.61
+49.6%
10.9%US$23.00US$16.00n/a18
Nov ’24US$12.56
US$18.58
+48.0%
11.6%US$23.00US$16.00US$7.4218
Oct ’24US$13.84
US$18.08
+30.7%
12.6%US$22.00US$14.00US$7.9218
Sep ’24US$14.91
US$17.97
+20.5%
13.3%US$22.00US$14.00US$9.2116
Aug ’24US$15.72
US$17.72
+12.7%
13.8%US$22.00US$14.00US$10.2116
Jul ’24US$11.97
US$16.84
+40.7%
17.8%US$22.00US$13.00US$10.0916
Jun ’24US$10.27
US$17.23
+67.8%
17.0%US$22.00US$12.00US$11.0215
May ’24US$11.19
US$18.17
+62.3%
18.8%US$26.00US$13.00US$10.5015
Apr ’24US$11.70
US$20.70
+76.9%
18.5%US$26.00US$14.00US$11.7515
Mar ’24US$14.33
US$20.83
+45.4%
17.4%US$26.00US$15.00US$11.7415
Feb ’24US$16.26
US$22.77
+40.0%
15.5%US$28.00US$15.00US$10.8415
Jan ’24US$16.84
US$22.80
+35.4%
13.9%US$28.00US$15.00US$10.8015
Dec ’23US$17.43
US$22.43
+28.7%
13.1%US$26.00US$15.00US$11.7714
Nov ’23US$18.01
US$21.47
+19.2%
16.1%US$26.00US$12.00US$12.5615

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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