Precision Drilling Valuation
| PD Stock | CAD 72.58 1.67 2.25% |
At this time, the company appears to be undervalued. Precision Drilling holds a recent Real Value of C$78.41 per share. The prevailing price of the company is C$72.58. Our model determines the value of Precision Drilling from analyzing the company fundamentals such as Shares Outstanding of 13.78 M, operating margin of 0.08 %, and Return On Equity of 0.0684 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Precision Drilling's valuation include:
Price Book 0.5962 | Enterprise Value | Enterprise Value Ebitda 3.3993 | Price Sales 0.5257 | Forward PE 10.9529 |
Undervalued
Today
Please note that Precision Drilling's price fluctuation is very steady at this time. Calculation of the real value of Precision Drilling is based on 3 months time horizon. Increasing Precision Drilling's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Precision Drilling is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Precision Stock. However, Precision Drilling's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 72.58 | Real 78.41 | Hype 72.58 | Naive 77.49 |
The intrinsic value of Precision Drilling's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Precision Drilling's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Precision Drilling helps investors to forecast how Precision stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Precision Drilling more accurately as focusing exclusively on Precision Drilling's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Precision Drilling's intrinsic value based on its ongoing forecasts of Precision Drilling's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Precision Drilling's closest peers.
Precision Drilling Cash |
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Precision Valuation Trend
Knowing Precision Drilling's actual value is paramount for traders when making sound investment determinations. Using both Precision Drilling's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Precision Drilling Total Value Analysis
Precision Drilling is at this time anticipated to have takeover price of 1.81 B with market capitalization of 1 B, debt of 992.19 M, and cash on hands of 80.58 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Precision Drilling fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.81 B | 1 B | 992.19 M | 80.58 M |
Precision Drilling Investor Information
About 58.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.6. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Precision Drilling has Price/Earnings To Growth (PEG) ratio of 0.33. The entity recorded earning per share (EPS) of 7.64. The firm last dividend was issued on the 4th of November 2015. Precision Drilling had 1:20 split on the 12th of November 2020. Precision Drilling may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 354.7 M | 575.7 M |
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Precision Drilling Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Precision Drilling has an asset utilization ratio of 64.19 percent. This suggests that the Company is making C$0.64 for each dollar of assets. An increasing asset utilization means that Precision Drilling is more efficient with each dollar of assets it utilizes for everyday operations.Precision Drilling Ownership Allocation
The market capitalization of Precision Drilling is C$1 Billion. Over half of Precision Drilling's outstanding shares are owned by third-party entities. These third-party entities are typically referred to as corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Precision Drilling. Please watch out for any change in the institutional holdings of Precision Drilling as this could mean something significant has changed or is about to change at the company. Note, that even with substantial debt, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company at some point.Precision Drilling Profitability Analysis
The company reported the revenue of 1.94 B. Net Income was 289.24 M with profit before overhead, payroll, taxes, and interest of 653.64 M.About Precision Drilling Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Precision Drilling. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Precision Drilling based exclusively on its fundamental and basic technical indicators. By analyzing Precision Drilling's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Precision Drilling's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Precision Drilling. We calculate exposure to Precision Drilling's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Precision Drilling's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 660 M | 693 M | |
| Pretax Profit Margin | 0.16 | 0.17 | |
| Operating Profit Margin | 0.18 | 0.13 | |
| Net Profit Margin | 0.17 | 0.10 | |
| Gross Profit Margin | 0.44 | 0.31 |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Precision Drilling. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Precision Stock, please use our How to Invest in Precision Drilling guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.