Select Energy Services, Inc., an oilfield services company, provides water solutions to the United States unconventional oil and gas industry. The company operates through three segments: Water Solutions, Accommodations and Rentals, and Well-site Completion and Construction Services. The company is based in Gainesville, Texas.
WTTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WTTR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Select Energy Services Inc ranked in the 87th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1435.83%. The most interesting components of our discounted cash flow analysis for Select Energy Services Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 0.99 years, is 0.37% -- higher than 78.82% of stocks in our DCF forecasting set.
Select Energy Services Inc's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 84.79% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 61.71% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GLDD, SGRP, ARC, KNOP, and DLHC can be thought of as valuation peers to WTTR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.