Nine Energy Service, Inc. operates as an onshore completion and production services provider that targets unconventional oil and gas resource development in North America. It operates in two segments, Completion Solutions and Production Solutions. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is based in Houston, Texas.
NINE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Nine Energy Service Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nine Energy Service Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 380.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Nine Energy Service Inc ended up being:
13% of the company's capital comes from equity, which is greater than just 4.96% of stocks in our cash flow based forecasting set.
Nine Energy Service Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -12.53. This coverage rate is greater than that of merely 6.52% 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 91.15% stocks in the Energy sector that generate 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 NINE, try DCP, ERA, MMLP, SPN, and PTEN.
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Nine Energy Service (NINE) says it received notification from the New York Stock Exchange that it has regained compliance with the NYSE's continued listing standards.In April, the company fell below the continued listing standard to maintain a minimum average closing price of $1/share over a period of 30 consecutive trading...
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