ProPetro Holding Corp. (PUMP): Price and Financial Metrics

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PUMP Price/Volume Stats

ProPetro Holding Corp. (PUMP) Company Bio

ProPetro Holding Corporation provides oilfield services. The company offers hydraulic fracturing and other complementary services, including cementing, acidizing, coiled tubing, flowback, and surface air drilling services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. The company was founded in 2007 and is based in Midland, Texas.

PUMP Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for ProPetro Holding Corp. To summarize, we found that ProPetro Holding Corp ranked in the 7th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 97%. In terms of the factors that were most noteworthy in this DCF analysis for PUMP, they are:

• The compound growth rate in the free cash flow of ProPetro Holding Corp over the past 2.01 years is -0.37%; that's better than merely 6.1% of cash flow producing equities in the Energy sector, where it is classified.
• The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 2.53% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• ProPetro Holding Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -55.44. This coverage rate is greater than that of only 2.58% of stocks we're observing for the purpose of forecasting via discounted cash flows.

For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PUMP, try CKH, FPPP, NVGS, BTEGF, and CLB.