Precision Drilling Corporation (PDS) fair value: what the stock is really worth
As of Oct 28, 2026: fair value (intrinsic value) of Precision Drilling Corporation stock $39.71, price $105, upside -62.3%, quality 48 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value 30%+ above price?No
Quality 50+?No
In an uptrend?Yes
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 29, 2026.
How to read this chart
60‑month range $28.98 – $105.47 · fair‑value band $23.01 – $42.62 · the $105.47 price screens above the $39.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 29, 2026.
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Precision Drilling Corporation, a drilling company, provides onshore drilling services to exploration and production companies in the oil and natural gas and geothermal industries in the United States, Canada, and internationally.
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It operates through Contract Drilling Services; and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil, natural gas, and geothermal industry.
This segment also offers services, including turnkey drilling contracts; and procurement and distribution of oilfield supplies, as well as manufacture, sale, and repair of drilling and service rig equipment.
In addition, the company offers automation solutions for drilling operations comprising AlphaAutomation, AlphaTM, AlphaApps, AlphaAnalytics, and AlphaARMS; and EverGreen suite of environmental solutions.
The Completion and Production Services segment provide service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies.
This segment also operates well completion and workover services. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.
Stock analysis
Precision Drilling Corporation (PDS) currently trades at $105.47, while our model-based Fair Value estimate is $39.71, 62.3% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of $46.81 per share, and 1 of the 22 models we run sit above the $105.47 price.
Bear case: the Multiples group reads lowest at $11.55, and 21 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $23.01 (bear) to $42.62 (bull), the price of $105.47 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 48/100 (below-average quality), in the Energy sector.
Mixed Growth: Spin-off in 2007: revenue and profit before it include the divested business. Growth is measured afresh from 2007.
Precision Drilling Corporation reported revenue of C$1.8B in FY2025 versus C$987M in FY2021, a compound +16.9%/yr. Reported net income was C$1.8M in FY2025.
Key figures
Market cap $1.4B Small · P/S ratio 0.69 · EPS (TTM) $−1.83 · Net margin −1.7% · Return on equity −1.9% · Return on assets (EBIT) 5.8% · Operating margin 3.2% · Revenue (TTM) C$1.9B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 20 out of 100 (medium confidence).
What moves the price
The share trades at its 52-week high and 85% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at −27% fair-value upside, at −62%, PDS screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($0.7900 to $160.06). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$23.01Fair Value $39.71Bull$42.62
Price $105.47 · Upside -62.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2007: revenue and profit before it include the divested business. Growth is measured afresh from 2007.
Revenue growth 1 year
−3.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.2%
Start year 2020 (pandemic). Over 10 years: +1.7% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−20.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−20.9%
Dividend (yield on the price)0.0%
Per share before 2007divided by the spin-off factor 1.0159
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−20.9% vs −24.4%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−9% → 6%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+13.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in CAD, Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +10.9% a year for the price and +3.9% for the forecasts.
Compare Precision Drilling Corporation with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas Drilling · 33 stocks
Beats the industry median on 3/11 measures
Overall it trails its industry peers.
Valuation
Quality Score48 · Above median
Fair Value upside−62.3% · Bottom 25%
Profitability
Return on assets0.1% · Below median
Net margin (12 months)−2.9% · Below median
Operating margin (12 months)3.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)11.4% · Top 25%
Balance sheet
Debt / equity0.43× · Above median
Valuation Multiplesvs Oil & Gas Drilling median · lower = cheaper
P/B1.25× · Cheaper than median
P/S (12 months)1.73× · Pricier than median
Price / free cash flow22.3× · Pricier than median
EV/EBITDA9.6× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 17
FUTURE (revenue growth)57· sector 0
PAST (return on equity)0· sector 20
HEALTH (low debt)79· sector 82
DIVIDEND (yield)0· sector 34
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Precision Drilling Corporation (PDS) overvalued or undervalued?
As of Oct 29, 2026, our model estimates a fair value of $39.71 versus a price of $105.47, about −62% upside (overvalued).
What is the fair value of PDS?
Our model-based fair value for Precision Drilling Corporation is $39.71 (as of Oct 29, 2026), built from audited fundamentals. The current price: $105.47.
What is the quality score of PDS?
Precision Drilling Corporation has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Precision Drilling Corporation (PDS)?
Our model-based price target is the fair value of $39.71 (as of Oct 29, 2026) from 22 valuation models. Cautious scenario $23.01, optimistic scenario $42.62. It is a calculation from audited fundamentals, not an analyst target.
What is the Precision Drilling Corporation stock forecast for 2026?
Our models put fair value at $39.71, about −62% upside versus a price of $105.47 (overvalued). Cautious scenario $23.01, optimistic scenario $42.62. The calculation is refreshed regularly with new filings.
What is the revenue of Precision Drilling Corporation (PDS)?
Precision Drilling Corporation reported trailing-twelve-month revenue of about C$1.9B (latest available figure, as of Oct 29, 2026).
What growth is priced into Precision Drilling Corporation (PDS)?
For today's price to be fair in a discounted-cash-flow model, Precision Drilling Corporation would have to grow free cash flow by +13.2 % per year for five years (discount rate 12.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.2 % per year. As of Oct 29, 2026.
What discount rate (WACC) does the fair value of PDS use?
Our models discount Precision Drilling Corporation at 12.5 %: a base by market capitalisation (small), damped by beta 1.45, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Precision Drilling Corporation that is +13.2 % per year a year over ten years, using the same discount rate (12.5 %) and the same formula as our fair value.
How much growth has Precision Drilling Corporation (PDS) delivered so far?
Over the past 5 years revenue at Precision Drilling Corporation grew +20.2 % a year. The price currently implies +13.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Precision Drilling Corporation (PDS) growing?
The median revenue growth in the sector is +13.0 % a year. That is the yardstick for the growth priced into Precision Drilling Corporation (+13.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Precision Drilling Corporation (PDS)?
The free-cash-flow yield on the price is 7.51 %: that much free cash flow Precision Drilling Corporation produces per unit of market value. When it exceeds the discount rate of our models (12.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Precision Drilling Corporation (PDS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Precision Drilling Corporation it is $39.71 per share (as of Oct 29, 2026), against a price of $105.47. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Precision Drilling Corporation stock overvalued or undervalued in 2026?
As of Oct 29, 2026, PDS trades above its calculated fair value: price $105.47, fair value $39.71, a gap of about −62% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PDS?
No. The price is what the market pays today ($105.47); the fair value is what the company's own numbers justify ($39.71). For Precision Drilling Corporation the two are $65.76 per share apart. That gap is exactly why we show both numbers side by side.
How much is Precision Drilling Corporation worth?
The market values Precision Drilling Corporation at about $1.4B (market capitalisation, as of Oct 29, 2026). Per share that is $105.47; our models calculate a fair value of $39.71 per share.
What do the bullish and bearish scenarios say about PDS?
Our models span a range for Precision Drilling Corporation: cautious scenario $23.01, base $39.71, optimistic $42.62 per share (as of Oct 29, 2026, price $105.47). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of PDS?
The PEG ratio of Precision Drilling Corporation is 33.32 (P/E divided by earnings growth, as of Oct 29, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Precision Drilling Corporation (PDS)?
Balance-sheet figures for Precision Drilling Corporation (as of Oct 29, 2026): return on equity −1.9%, debt of 0.43 per unit of equity. They feed the Quality Score of 48/100, which measures business quality independently of the share price.
How far is PDS from its 52-week high?
Precision Drilling Corporation trades at $105.47, at its 52-week high of $105.47 and 85% above the low of $56.91 (as of Oct 28, 2026). Distance from the high says nothing about value: that is what the fair value of $39.71 is for.
Which stocks are comparable to Precision Drilling Corporation?
From the same area (Energy) we also value Noble Corporation, Transocean Ltd, Valaris Limited, Sinopec Oilfield Service Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Precision Drilling Corporation stock attractive at the current price?
The data as of Oct 29, 2026: price $105.47, calculated fair value $39.71 (−62%), Quality Score 48/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PDS calculated?
We run Precision Drilling Corporation through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $39.71, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.4 % above its aggregate fair value. Precision Drilling Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Precision Drilling Corporation (PDS)?
The closing price on Oct 28, 2026 was $105.47. Our model-based fair value is $39.71, about −62% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Precision Drilling Corporation right now?
The price sits above even our optimistic bull case ($42.62). The favourable scenario is already priced in. Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($23.01 to $42.62) leaves room in how you read the outcome.
Key figures of Precision Drilling Corporation
How large is the market capitalisation of Precision Drilling Corporation (PDS)?
The market capitalisation of Precision Drilling Corporation is $1.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Precision Drilling Corporation (PDS)?
The price-to-sales ratio of Precision Drilling Corporation is 0.69 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Precision Drilling Corporation (PDS)?
Earnings per share at Precision Drilling Corporation are $−1.83. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Precision Drilling Corporation (PDS)?
The net margin of Precision Drilling Corporation is −1.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Precision Drilling Corporation (PDS)?
The return on equity (ROE) of Precision Drilling Corporation is −1.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Precision Drilling Corporation (PDS)?
On an EBIT basis the return on assets of Precision Drilling Corporation is 5.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Precision Drilling Corporation (PDS)?
The operating margin of Precision Drilling Corporation is 3.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Precision Drilling Corporation (PDS)?
Revenue at Precision Drilling Corporation is growing +11.4% versus a year earlier (3y avg +4.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Precision Drilling Corporation (PDS)?
Earnings per share at Precision Drilling Corporation are growing −39.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Precision Drilling Corporation (PDS) carry?
The net debt of Precision Drilling Corporation is C$705M (fiscal year 2025, ≈ 4.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Oct 29, 2026