PTEN Valuation

Patterson-UTI Energy Inc

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6.400

+0.13(2.073%)1D

PTEN Relative Valuation

PTEN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PTEN is overvalued; if below, it's undervalued.

Historical Valuation

Patterson-UTI Energy Inc (PTEN) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.27 is considered Undervalued compared with the five-year average of -9.62. The fair price of Patterson-UTI Energy Inc (PTEN) is between 8.33 to 8.98 according to relative valuation methord. Compared to the current price of 6.27 USD , Patterson-UTI Energy Inc is Undervalued By 24.7%.

Relative Value

Fair Zone

8.33-8.98

Current Price：6.27

24.7%

Undervalued

-14.32

Trailing

Forward

4.50

EV/EBITDA

Patterson-UTI Energy Inc. (PTEN) has a current EV/EBITDA of 4.50. The 5-year average EV/EBITDA is 5.65. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 2.92, Fairly Valued between 8.38 and 2.92, Overvalued between 8.38 and 11.11, and Strongly Overvalued above 11.11. The current Forward EV/EBITDA of 4.50 falls within the Historic Trend Line -Fairly Valued range.

-28.71

EV/EBIT

Patterson-UTI Energy Inc. (PTEN) has a current EV/EBIT of -28.71. The 5-year average EV/EBIT is 30.21. The thresholds are as follows: Strongly Undervalued below -202.08, Undervalued between -202.08 and -85.93, Fairly Valued between 146.35 and -85.93, Overvalued between 146.35 and 262.49, and Strongly Overvalued above 262.49. The current Forward EV/EBIT of -28.71 falls within the Historic Trend Line -Fairly Valued range.

6.27

Patterson-UTI Energy Inc. (PTEN) has a current PS of 6.27. The 5-year average PS is 0.87. The thresholds are as follows: Strongly Undervalued below 0.06, Undervalued between 0.06 and 0.47, Fairly Valued between 1.28 and 0.47, Overvalued between 1.28 and 1.69, and Strongly Overvalued above 1.69. The current Forward PS of 6.27 falls within the Strongly Overvalued range.

2.80

P/OCF

Patterson-UTI Energy Inc. (PTEN) has a current P/OCF of 2.80. The 5-year average P/OCF is 4.65. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 2.44, Fairly Valued between 6.86 and 2.44, Overvalued between 6.86 and 9.07, and Strongly Overvalued above 9.07. The current Forward P/OCF of 2.80 falls within the Historic Trend Line -Fairly Valued range.

5.43

P/FCF

Patterson-UTI Energy Inc. (PTEN) has a current P/FCF of 5.43. The 5-year average P/FCF is 6.97. The thresholds are as follows: Strongly Undervalued below -195.17, Undervalued between -195.17 and -94.10, Fairly Valued between 108.03 and -94.10, Overvalued between 108.03 and 209.10, and Strongly Overvalued above 209.10. The current Forward P/FCF of 5.43 falls within the Historic Trend Line -Fairly Valued range.

Patterson-UTI Energy Inc (PTEN) has a current Price-to-Book (P/B) ratio of 0.73. Compared to its 3-year average P/B ratio of 1.13 , the current P/B ratio is approximately -35.45% higher. Relative to its 5-year average P/B ratio of 1.19, the current P/B ratio is about -38.58% higher. Patterson-UTI Energy Inc (PTEN) has a Forward Free Cash Flow (FCF) yield of approximately 12.14%. Compared to its 3-year average FCF yield of 11.22%, the current FCF yield is approximately 8.18% lower. Relative to its 5-year average FCF yield of 7.62% , the current FCF yield is about 59.44% lower.

0.73

P/B

Median3y

1.13

Median5y

1.19

12.14

FCF Yield

Median3y

11.22

Median5y

7.62

Competitors Valuation Multiple

The average P/S ratio for PTEN's competitors is 34.59, providing a benchmark for relative valuation. Patterson-UTI Energy Inc Corp (PTEN) exhibits a P/S ratio of 6.27, which is -81.87% above the industry average. Given its robust revenue growth of -13.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PTEN.O

Patterson-UTI Energy Inc

Helmerich and Payne Inc

Precision Drilling Corp

Performance Decomposition

Market capitalization of PTEN decreased by 22.33% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -9.37 to -17.50.

The secondary factor is the Revenue Growth, contributed -13.36%to the performance.

Overall, the performance of PTEN in the past 1 year is driven by P/E Change. Which is more unsustainable.

-13.36%

1.36B → 1.18B

Revenue Growth

-95.70%

-72.08 → -3.10

Margin Expansion

86.73%

-9.37 → -17.50

P/E Change

-22.33%