Patterson-UTI Energy, Inc.

PTEN

EnergyOil & Gas DrillingNASDAQ

$12.00

Market Cap: $4.56B

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

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$3.62 – $81.90	$7.90	-25.4%
▸ Trading Multiples
EV/Revenue	$16.52 – $37.90	$34.62	+226.9%

Valuation History

DCF Analysis

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

REVENUE DCF FAIR VALUE

$7.90

Market Price

$12.00

Upside / Downside

-34.2%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -0.5% to a target of 15.8% over 5 years, discounted at a WACC of 6.9%, Patterson-UTI Energy, Inc. (PTEN) has an intrinsic value of $7.90 per share (range: $3.62 – $81.90).

Key Assumptions

Current Operating Margin

-0.5%

Target Operating Margin

15.8%

WACC

6.9%

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	4,454	-7.7%	2.7%	122	105	1,245	(735)	144	470	455
2027	4,645	4.3%	6.0%	278	239	1,298	(898)	26	614	555
2028	4,740	2.0%	9.2%	438	377	1,325	(1,050)	13	639	541
2029	6,162	30.0%	12.5%	770	663	1,723	(1,539)	195	651	516
2030	8,011	30.0%	15.8%	1,262	1,087	2,239	(2,228)	253	845	626
2031	10,414	30.0%	15.8%	1,640	1,412	2,911	(3,190)	329	805	557
2032	13,110	25.9%	15.8%	2,065	1,778	3,665	(4,386)	369	688	445
2033	15,754	20.2%	15.8%	2,481	2,137	4,404	(5,715)	362	463	281
2034	18,029	14.4%	15.8%	2,840	2,445	5,040	(7,050)	311	123	70
2035	19,601	8.7%	15.8%	3,087	2,659	5,479	(8,219)	215	-296	-157

Enterprise Value Bridge

Sum of PV(FCFF)3,888

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value3,888

(–) Net Debt860

Equity Value3,028

(÷) Shares Outstanding383

Fair Value per Share$7.90

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	9.8%	12.8%	15.8%	18.8%	21.8%
4.9%	$-1	$4	$9	$32	$82
5.9%	$-0	$4	$8	$24	$55
6.9%	$-0	$4	$8	$20	$42
7.9%	$-0	$4	$8	$17	$34
8.9%	$0	$4	$7	$15	$29

Current price: $12.00. 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

$34.62

Market Price

$12.00

Upside / Downside

+188.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Patterson-UTI Energy, Inc. (PTEN) has a fair value of $34.62 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	4,602	1.1x	1.0x
Crescent Energy CompanyCRGY	4,427	2.8x	2.2x
Tidewater Inc.TDW	4,230	3.2x	3.2x
International Seaways, Inc.INSW	3,743	5.0x	5.2x
Oceaneering International, Inc.OII	3,651	1.2x	1.2x
Helmerich & Payne, Inc.HP	3,487	1.5x	1.4x
Kinetik Holdings Inc.KNTK	3,018	3.9x	3.5x
Delek US Holdings, Inc.DK	2,709	0.5x	0.5x
Delek Logistics Partners, LPDKL	2,680	2.7x	2.7x
Genesis Energy, L.P.GEL	2,160	3.2x	3.3x
Industry Median		2.8x	2.7x
(*) Revenue		4,827	5,448
= Enterprise Value		13,427	14,841
(-) Net Debt		860	860
Equity Value		12,567	13,981
(/) Outstanding shares		383	383
Fair Price		$33	$36

Selected Fair Value (avg of trailing + forward)

$34.62

+188.5%

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

$3.62 – $81.90

$7.90

-25.4%

▸ Trading Multiples

EV/Revenue

$16.52 – $37.90

$34.62

+226.9%

DCF Analysis

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

REVENUE DCF FAIR VALUE

$7.90

Market Price

$12.00

Upside / Downside

-34.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-0.5%

Target Operating Margin

15.8%

WACC

6.9%

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	4,454	-7.7%	2.7%	122	105	1,245	(735)	144	470	455
2027	4,645	4.3%	6.0%	278	239	1,298	(898)	26	614	555
2028	4,740	2.0%	9.2%	438	377	1,325	(1,050)	13	639	541
2029	6,162	30.0%	12.5%	770	663	1,723	(1,539)	195	651	516
2030	8,011	30.0%	15.8%	1,262	1,087	2,239	(2,228)	253	845	626
2031	10,414	30.0%	15.8%	1,640	1,412	2,911	(3,190)	329	805	557
2032	13,110	25.9%	15.8%	2,065	1,778	3,665	(4,386)	369	688	445
2033	15,754	20.2%	15.8%	2,481	2,137	4,404	(5,715)	362	463	281
2034	18,029	14.4%	15.8%	2,840	2,445	5,040	(7,050)	311	123	70
2035	19,601	8.7%	15.8%	3,087	2,659	5,479	(8,219)	215	-296	-157

Enterprise Value Bridge

Sum of PV(FCFF)3,888

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value3,888

(–) Net Debt860

Equity Value3,028

(÷) Shares Outstanding383

Fair Value per Share$7.90

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.8%	12.8%	15.8%	18.8%	21.8%
4.9%	$-1	$4	$9	$32	$82
5.9%	$-0	$4	$8	$24	$55
6.9%	$-0	$4	$8	$20	$42
7.9%	$-0	$4	$8	$17	$34
8.9%	$0	$4	$7	$15	$29

Current price: $12.00. 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

$34.62

Market Price

$12.00

Upside / Downside

+188.5%

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	4,602	1.1x	1.0x
Crescent Energy CompanyCRGY	4,427	2.8x	2.2x
Tidewater Inc.TDW	4,230	3.2x	3.2x
International Seaways, Inc.INSW	3,743	5.0x	5.2x
Oceaneering International, Inc.OII	3,651	1.2x	1.2x
Helmerich & Payne, Inc.HP	3,487	1.5x	1.4x
Kinetik Holdings Inc.KNTK	3,018	3.9x	3.5x
Delek US Holdings, Inc.DK	2,709	0.5x	0.5x
Delek Logistics Partners, LPDKL	2,680	2.7x	2.7x
Genesis Energy, L.P.GEL	2,160	3.2x	3.3x
Industry Median		2.8x	2.7x
(*) Revenue		4,827	5,448
= Enterprise Value		13,427	14,841
(-) Net Debt		860	860
Equity Value		12,567	13,981
(/) Outstanding shares		383	383
Fair Price		$33	$36

Selected Fair Value (avg of trailing + forward)

$34.62

+188.5%