Precision Drilling Corporation

NYSE:PDS Stock Report

Market Cap: US$797.7m

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 ($56.58) is trading below our estimate of fair value ($157.76)

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 Ratio4.7x
EarningsCA$243.12m
Market CapCA$1.15b

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 Average4.9x
SDRL Seadrill
5.7x-2.9%US$2.4b
PKDC Parker Drilling
2.2xn/aUS$278.4m
HP Helmerich & Payne
8.9x-4.1%US$3.0b
VAL Valaris
2.7x-12.0%US$2.9b
PDS Precision Drilling
4.7x-4.4%US$1.1b

Price-To-Earnings vs Peers: PDS is good value based on its Price-To-Earnings Ratio (4.7x) compared to the peer average (4.9x).

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$59.07m
BASX.Q Basic Energy Services
n/an/aUS$24.00
No more companies available in this PE range
PDS 4.7xIndustry Avg. 14.7xNo. of Companies5PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PDS is good value based on its Price-To-Earnings Ratio (4.7x) compared to the US Energy Services industry average (14.7x).

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 Ratio4.7x
Fair PE Ratio7.9x

Price-To-Earnings vs Fair Ratio: PDS is good value based on its Price-To-Earnings Ratio (4.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).

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$56.58
US$87.34
+54.4%
6.9%US$99.22US$80.35n/a9
Dec ’25US$63.17
US$88.99
+40.9%
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$83.35US$63.1710
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

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 05:51
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Precision Drilling Corporation is covered by 45 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Waqar SyedATB Capital Markets
Tim MonachelloATB Capital Markets
Sean MeakimBarclays