Price to trailing twelve month operating cash flow for NOV is currently 2.72, higher than just 16.33% of US stocks with positive operating cash flow.
NOV's price/sales ratio is 0.43; that's higher than the P/S ratio of only 15.62% of US stocks.
National Oilwell Varco Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 16.4%, greater than the shareholder yield of 86.29% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to National Oilwell Varco Inc are TGA, TDW, EVH, BCEI, and MMYT.
National Oilwell Varco designs, manufactures, and sells equipment and components used in oil and gas drilling, completion, and production; and provides oilfield services to the upstream oil and gas industry worldwide. The company was founded in 1862 and is based in Houston, Texas.
NOV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for National Oilwell Varco Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that National Oilwell Varco Inc ranked in the 34th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 40.67%. The most interesting components of our discounted cash flow analysis for National Oilwell Varco Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.45 years, is -0.12% -- higher than just 13.49% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 81.95% of its sector Energy.
National Oilwell Varco Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -30.47. This coverage rate is greater than that of merely 4.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VLO, BTE, PSXP, FET, and PBR can be thought of as valuation peers to NOV, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Source: Barron's The S&P 500 (SPY) and the Nasdaq recently closed at record highs, yet the economy still may not be on solid footing. Q2 GDP fell over 30%, and it may remain negative in recession territory until the pandemic ends. That sounds bearish for cyclical names like National Oilwell...