Precision Drilling Corporation provides customers with access to an extensive fleet of contract drilling rigs, directional drilling services, well service and snubbing rigs, coil-tubing services, camps, rental equipment, and water treatment units. The company was founded in 1951 and is based in Calgary, Canada.
PDS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for PRECISION DRILLING Corp. To summarize, we found that PRECISION DRILLING Corp ranked in the 88th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1486.5%. The most interesting components of our discounted cash flow analysis for PRECISION DRILLING Corp ended up being:
21% of the company's capital comes from equity, which is greater than merely 6.68% of stocks in our cash flow based forecasting set.
PRECISION DRILLING Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), PRECISION DRILLING Corp has a reliance on debt greater than 76.95% of them.
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 PDS, try BPMP, PAGP, PTEN, WTTR, and WES.
PDS Can Move Sideways Source Precision Drilling Corporation (PDS), which was maintaining a relatively steady rig count up until the last quarter, finally took the plunge in Q2 energy demand remains persistently low. However, the company's average margin at the rig level improved as its revenue per rig operating day...
Badsha Chowdhury on Seeking Alpha | September 8, 2020
Precision Drilling ([[PDS]] -2.2%) has received TSX's approval to implement its share buyback, which effectively renews the existing buyback, which is scheduled to terminate on August 26.Pursuant to the renewed issuer bid, the Company has been authorized to purchase up to ~24M shares, or ~10% of the public float as...