Discounted Cash Flow (DCF) Analysis Levered

Patterson-UTI Energy, Inc. (PTEN)

$11.31

-0.27 (-2.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.00 | 11.31 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,3272,470.681,124.251,357.082,647.592,883.033,139.403,418.573,722.574,053.59
Revenue (%)
Operating Cash Flow 730.67696.20278.8695.50566.19596.02649.02706.73769.58838.01
Operating Cash Flow (%)
Capital Expenditure -641.46-347.51-145.48-166.32-436.80-432.68-471.16-513.06-558.68-608.36
Capital Expenditure (%)
Free Cash Flow 89.21348.69133.38-70.82129.39163.33177.86193.67210.89229.65

Weighted Average Cost Of Capital

Share price $ 11.31
Beta 2.287
Diluted Shares Outstanding 219.50
Cost of Debt
Tax Rate 7.87
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.539
Total Debt 855.65
Total Equity 2,482.50
Total Capital 3,338.15
Debt Weighting 25.63
Equity Weighting 74.37
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,3272,470.681,124.251,357.082,647.592,883.033,139.403,418.573,722.574,053.59
Operating Cash Flow 730.67696.20278.8695.50566.19596.02649.02706.73769.58838.01
Capital Expenditure -641.46-347.51-145.48-166.32-436.80-432.68-471.16-513.06-558.68-608.36
Free Cash Flow 89.21348.69133.38-70.82129.39163.33177.86193.67210.89229.65
WACC
PV LFCF 145.94141.99138.15134.41130.78
SUM PV LFCF 691.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.92
Free cash flow (t + 1) 234.24
Terminal Value 2,361.30
Present Value of Terminal Value 1,344.66

Intrinsic Value

Enterprise Value 2,035.92
Net Debt 718.10
Equity Value 1,317.82
Shares Outstanding 219.50
Equity Value Per Share 6.00