Patterson-UTI Energy, Inc.

PTEN

EnergyOil & Gas DrillingNASDAQ

$11.41

Market Cap: $4.33B

Patterson-UTI Energy, Inc. (PTEN) Valuation Summary

Updated May 11, 2026 18:41

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$3.70 – $89.89	$8.18	-28.3%
▸ Trading Multiples
EV/Revenue	$17.48 – $36.70	$34.57	+203.0%

Valuation History

DCF Analysis

Patterson-UTI Energy, Inc. (PTEN) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.18

Market Price

$11.41

Upside / Downside

-28.3%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -0.5% to a target of 15.7% over 5 years, discounted at a WACC of 6.8%, Patterson-UTI Energy, Inc. (PTEN) has an intrinsic value of $8.18 per share (range: $3.70 – $89.89).

Key Assumptions

Current Operating Margin

-0.5%

Target Operating Margin

15.7%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

13.7%

Target CapEx/Rev

41.9%

D&A/Revenue

27.9%

Tax Rate

13.9%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	4,530	-6.1%	2.7%	123	106	1,266	(748)	155	470	455
2027	4,802	6.0%	6.0%	286	246	1,342	(928)	37	623	565
2028	4,952	3.1%	9.2%	455	392	1,384	(1,097)	21	659	559
2029	6,438	30.0%	12.4%	801	689	1,799	(1,608)	203	677	538
2030	8,369	30.0%	15.7%	1,312	1,130	2,339	(2,327)	264	877	653
2031	10,879	30.0%	15.7%	1,705	1,468	3,041	(3,332)	344	833	581
2032	13,696	25.9%	15.7%	2,147	1,849	3,828	(4,582)	386	709	463
2033	16,457	20.2%	15.7%	2,580	2,221	4,600	(5,971)	378	473	289
2034	18,834	14.4%	15.7%	2,952	2,542	5,265	(7,365)	325	116	67
2035	20,477	8.7%	15.7%	3,210	2,764	5,724	(8,586)	225	-323	-173

Enterprise Value Bridge

Sum of PV(FCFF)3,997

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value3,997

(–) Net Debt860

Equity Value3,137

(÷) Shares Outstanding383

Fair Value per Share$8.18

Note:Terminal value is $0 because Year 5 FCFF is negative. The company's operating margin convergence does not fully offset reinvestment needs within 5 years. See the sensitivity matrix for scenarios where the model produces a positive terminal value (higher target margin or lower WACC).

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.7%	12.7%	15.7%	18.7%	21.7%
4.8%	$-1	$4	$9	$34	$90
5.8%	$-1	$4	$9	$25	$59
6.8%	$-0	$4	$8	$20	$45
7.8%	$-0	$4	$8	$18	$36
8.8%	$-0	$4	$8	$16	$30

Current price: $11.41. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 13.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$34.57

Market Price

$11.41

Upside / Downside

+203.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Patterson-UTI Energy, Inc. (PTEN) has a fair value of $34.57 based on 9 comparable companies in the Oil & Gas Drilling industry.

EV/Revenue Valuation — Oil & Gas Drilling

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Patterson-UTI Energy, Inc.PTEN	4,375	1.1x	1.0x
International Seaways, Inc.INSW	4,536	5.9x	6.2x
Crescent Energy CompanyCRGY	4,095	2.7x	2.0x
Tidewater Inc.TDW	3,872	2.9x	2.9x
Helmerich & Payne, Inc.HP	3,772	1.6x	1.5x
Oceaneering International, Inc.OII	3,645	1.2x	1.2x
Kinetik Holdings Inc.KNTK	3,271	4.0x	3.6x
Delek US Holdings, Inc.DK	2,822	0.5x	0.5x
Delek Logistics Partners, LPDKL	2,714	2.7x	2.8x
Genesis Energy, L.P.GEL	2,004	3.1x	3.2x
Industry Median		2.7x	2.8x
(*) Revenue		4,827	5,448
= Enterprise Value		13,206	15,026
(-) Net Debt		860	860
Equity Value		12,346	14,167
(/) Outstanding shares		383	383
Fair Price		$32	$37

Selected Fair Value (avg of trailing + forward)

$34.57

+203.0%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

—

N/A

—

Revenue DCF 10Y

$3.70 – $89.89

$8.18

-28.3%

▸ Trading Multiples

EV/Revenue

$17.48 – $36.70

$34.57

+203.0%

DCF Analysis

Patterson-UTI Energy, Inc. (PTEN) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.18

Market Price

$11.41

Upside / Downside

-28.3%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-0.5%

Target Operating Margin

15.7%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

13.7%

Target CapEx/Rev

41.9%

D&A/Revenue

27.9%

Tax Rate

13.9%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	4,530	-6.1%	2.7%	123	106	1,266	(748)	155	470	455
2027	4,802	6.0%	6.0%	286	246	1,342	(928)	37	623	565
2028	4,952	3.1%	9.2%	455	392	1,384	(1,097)	21	659	559
2029	6,438	30.0%	12.4%	801	689	1,799	(1,608)	203	677	538
2030	8,369	30.0%	15.7%	1,312	1,130	2,339	(2,327)	264	877	653
2031	10,879	30.0%	15.7%	1,705	1,468	3,041	(3,332)	344	833	581
2032	13,696	25.9%	15.7%	2,147	1,849	3,828	(4,582)	386	709	463
2033	16,457	20.2%	15.7%	2,580	2,221	4,600	(5,971)	378	473	289
2034	18,834	14.4%	15.7%	2,952	2,542	5,265	(7,365)	325	116	67
2035	20,477	8.7%	15.7%	3,210	2,764	5,724	(8,586)	225	-323	-173

Enterprise Value Bridge

Sum of PV(FCFF)3,997

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value3,997

(–) Net Debt860

Equity Value3,137

(÷) Shares Outstanding383

Fair Value per Share$8.18

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.7%	12.7%	15.7%	18.7%	21.7%
4.8%	$-1	$4	$9	$34	$90
5.8%	$-1	$4	$9	$25	$59
6.8%	$-0	$4	$8	$20	$45
7.8%	$-0	$4	$8	$18	$36
8.8%	$-0	$4	$8	$16	$30

Current price: $11.41. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 13.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$34.57

Market Price

$11.41

Upside / Downside

+203.0%

Verdict

Undervalued

EV/Revenue Valuation — Oil & Gas Drilling

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Patterson-UTI Energy, Inc.PTEN	4,375	1.1x	1.0x
International Seaways, Inc.INSW	4,536	5.9x	6.2x
Crescent Energy CompanyCRGY	4,095	2.7x	2.0x
Tidewater Inc.TDW	3,872	2.9x	2.9x
Helmerich & Payne, Inc.HP	3,772	1.6x	1.5x
Oceaneering International, Inc.OII	3,645	1.2x	1.2x
Kinetik Holdings Inc.KNTK	3,271	4.0x	3.6x
Delek US Holdings, Inc.DK	2,822	0.5x	0.5x
Delek Logistics Partners, LPDKL	2,714	2.7x	2.8x
Genesis Energy, L.P.GEL	2,004	3.1x	3.2x
Industry Median		2.7x	2.8x
(*) Revenue		4,827	5,448
= Enterprise Value		13,206	15,026
(-) Net Debt		860	860
Equity Value		12,346	14,167
(/) Outstanding shares		383	383
Fair Price		$32	$37

Selected Fair Value (avg of trailing + forward)

$34.57

+203.0%