Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The company was founded in 2010 and is based in Houston, Texas.
FET Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Forum Energy Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Forum Energy Technologies Inc ranked in the 77th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Forum Energy Technologies Inc, consider:
4% of the company's capital comes from equity, which is greater than just 2.38% of stocks in our cash flow based forecasting set.
Forum Energy Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -16.99. This coverage rate is greater than that of just 3.85% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 17. This value is greater than 95.8% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CAPL, OVV, KOS, SU, and COP can be thought of as valuation peers to FET, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.