Precision Drilling Corporation

NYSE:PDS Stock Report

Market Cap: US$876.3m

Precision Drilling Valuation

Is PDS 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-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 PDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PDS ($63.03) is trading below our estimate of fair value ($163.47)

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

Key Valuation Metric

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

Key metric: As PDS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PDS. This is calculated by dividing PDS's market cap by their current earnings.
What is PDS's PE Ratio?
PE Ratio5.1x
EarningsCA$243.12m
Market CapCA$1.23b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.5x
SDRL Seadrill
6.3x-3.6%US$2.6b
HP Helmerich & Payne
9.8x-0.2%US$3.3b
PKDC Parker Drilling
2.9xn/aUS$361.2m
VAL Valaris
3.2x-8.7%US$3.4b
PDS Precision Drilling
5.1x-4.6%US$1.2b

Price-To-Earnings vs Peers: PDS is good value based on its Price-To-Earnings Ratio (5.1x) compared to the peer average (5.5x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NCSM NCS Multistage Holdings
1.4x-107.5%US$57.41m
BASX.Q Basic Energy Services
n/an/aUS$24.00
No more companies available in this PE range
PDS 5.1xIndustry Avg. 16.5xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PDS is good value based on its Price-To-Earnings Ratio (5.1x) compared to the US Energy Services industry average (16.5x).

Price to Earnings Ratio vs Fair Ratio

What is PDS'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.

PDS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.1x
Fair PE Ratio8x

Price-To-Earnings vs Fair Ratio: PDS is good value based on its Price-To-Earnings Ratio (5.1x) compared to the estimated Fair Price-To-Earnings Ratio (8x).

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 PDS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$63.03
US$88.99
+41.2%
7.4%US$101.99US$78.28n/a10
Nov ’25US$59.25
US$88.99
+50.2%
7.4%US$101.99US$78.28n/a10
Oct ’25US$62.91
US$95.92
+52.5%
8.2%US$105.43US$83.31n/a10
Sep ’25US$72.31
US$95.58
+32.2%
6.5%US$103.08US$82.89n/a10
Aug ’25US$74.88
US$95.58
+27.6%
6.5%US$103.08US$82.89n/a10
Jul ’25US$69.41
US$91.94
+32.5%
5.8%US$99.40US$84.05n/a10
Jun ’25US$74.56
US$92.39
+23.9%
5.3%US$99.51US$84.14n/a11
May ’25US$68.86
US$92.39
+34.2%
5.3%US$99.51US$84.14n/a11
Apr ’25US$67.72
US$91.41
+35.0%
7.3%US$102.92US$81.45n/a11
Mar ’25US$61.78
US$91.41
+48.0%
7.3%US$102.92US$81.45n/a11
Feb ’25US$60.71
US$92.41
+52.2%
8.7%US$105.21US$74.09n/a11
Jan ’25US$54.29
US$96.69
+78.1%
6.8%US$107.10US$86.73n/a10
Dec ’24US$57.77
US$95.09
+64.6%
7.1%US$105.09US$83.35n/a10
Nov ’24US$57.72
US$94.62
+63.9%
6.8%US$104.53US$82.91US$59.258
Oct ’24US$67.12
US$98.01
+46.0%
6.8%US$106.76US$84.67US$62.918
Sep ’24US$68.15
US$91.89
+34.8%
8.4%US$102.92US$80.87US$72.3110
Aug ’24US$64.19
US$91.61
+42.7%
10.8%US$105.78US$71.78US$74.8812
Jul ’24US$48.75
US$92.98
+90.7%
12.2%US$108.10US$64.25US$69.4111
Jun ’24US$43.70
US$94.96
+117.3%
11.5%US$106.31US$63.19US$74.5611
May ’24US$48.49
US$94.42
+94.7%
10.6%US$106.66US$66.20US$68.8611
Apr ’24US$51.42
US$104.47
+103.2%
17.1%US$136.37US$66.34US$67.7211
Mar ’24US$58.21
US$108.65
+86.7%
14.3%US$138.71US$74.98US$61.7811
Feb ’24US$78.29
US$114.38
+46.1%
11.3%US$139.05US$97.71US$60.7111
Jan ’24US$76.70
US$108.12
+41.0%
8.1%US$124.20US$94.09US$54.2911
Dec ’23US$78.77
US$108.12
+37.3%
8.1%US$124.20US$94.09US$57.7711
Nov ’23US$78.16
US$104.08
+33.2%
10.4%US$121.09US$80.73US$57.7211

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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