Nabors Industries provides drilling and rig services. The company offers rig instrumentation, optimization software, and directional drilling services. It also provides completion, life-of-well maintenance, and plugging and abandonment of a well. The company was founded in 1968 and is based in Hamilton, Bermuda.
NBR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Nabors Industries Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nabors Industries Ltd ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1711.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Nabors Industries Ltd, consider:
5% of the company's capital comes from equity, which is greater than merely 2.07% of stocks in our cash flow based forecasting set.
Nabors Industries Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.34. This coverage rate is greater than that of only 11.55% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Nabors Industries Ltd experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NBR, try CNQ, SGU, CVX, GEL, and GPRK.
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