Precision Drilling stock: fair value
PDSThe fair value of Precision Drilling under our model is $288.72, the price is 67% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly undervaluedIn our model the price counts as cheap below $206.23 and expensive above $481.20 (uncertainty high, based on the price swings of the past year).
Calculated with a cost of equity of 8.2%. At 9.2% the fair value would be $239.23, at 7.2% it would be $363.06.
Where the number comes from
From the cash-flow model alone; without earnings there is no industry value.
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.2%. Discounted at 8.2% (floor: government bond yield 3.2% plus 5 percentage points, since beta 1.07 times the risk premium would give less); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $288.72 per share: free cash flow for the next ten years, each year discounted to today at 8.2%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 8.2%) |
|---|---|---|---|---|
| 2026 | $143.72M | extrapolated at 16.2% | 0.9246 | $132.89M |
| 2027 | $161.33M | extrapolated at 12.3% | 0.8550 | $137.93M |
| 2028 | $176.69M | extrapolated at 9.5% | 0.7905 | $139.68M |
| 2029 | $190.14M | extrapolated at 7.6% | 0.7310 | $138.99M |
| 2030 | $202.07M | extrapolated at 6.3% | 0.6759 | $136.57M |
| 2031 | $212.85M | extrapolated at 5.3% | 0.6249 | $133.02M |
| 2032 | $222.81M | extrapolated at 4.7% | 0.5778 | $128.75M |
| 2033 | $232.22M | extrapolated at 4.2% | 0.5343 | $124.08M |
| 2034 | $241.27M | extrapolated at 3.9% | 0.4940 | $119.2M |
| 2035 | $250.14M | extrapolated at 3.7% | 0.4568 | $114.27M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $1.31B |
| Terminal value: cash flow 2035 × (1 + 3.2%) / (8.2% − 3.2%) | $5.16B |
| Present value of terminal value (× 0.4568) | $2.36B |
| Equity value (sum plus present value of terminal value) | $3.66B |
| Shares (diluted) | 12.69M |
| Value per share (equity value divided by shares) | $288.72 |
| Fair value (from the cash flow model alone) | $288.72 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = CA$1.4249)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 18 Oct 2026)
- Valuation signal Undervalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.