Dril Quip Stock Valuation

DRQ
 Stock
  

USD 23.96  0.37  1.52%   

What is the intrinsic value of Dril Quip stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Dril Quip, is its stock price multiplied by the total number of shares outstanding, calculating Dril Quip's enterprise value requires a different approach. It uses Dril Quip's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 6th of July 2022, Free Cash Flow is likely to grow to about 46.5 M. Also, Enterprise Value is likely to grow to about 335.1 M.
Dril-Quip shows a prevailing Real Value of $23.65 per share. The current price of the firm is $23.96. At this time, the firm appears to be fairly valued. Our model computes the value of Dril-Quip from reviewing the firm fundamentals such as Current Valuation of 663.78 M, profit margin of (31.58) %, and Shares Outstanding of 35.39 M as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
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Dril Quip Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Dril Quip's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Dril Quip Most Recent Valuation Data

Price Book
0.98
EPS Estimate Next Quarter
-0.11
Price Sales
2.59
EBITDA
-16.9 M
Beta
1.18
Fiscal Year End
December
Industry
Oil & Gas Equipment & Services
Fairly Valued
Today 23.96
Please note that Dril Quip's price fluctuation is not too volatile at this time. Calculation of the real value of Dril-Quip is based on 3 months time horizon. Increasing Dril Quip's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Dril-Quip is useful when determining the fair value of the Dril Quip stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Dril Quip. Since Dril Quip is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Dril Quip Stock. However, Dril Quip's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
23.65
Real Value
26.86
Upside
Estimating the potential upside or downside of Dril-Quip helps investors to forecast how Dril Quip stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Dril Quip more accurately as focusing exclusively on Dril Quip's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
-1.51-1.51-1.51
Details
Hype
Prediction
LowEstimated ValueHigh
21.1324.3427.55
Details
5 Analysts
Consensus
LowTarget PriceHigh
20.0024.3332.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Dril Quip's intrinsic value based on its ongoing forecasts of Dril Quip's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Dril Quip's closest peers. When choosing an evaluation method for Dril-Quip, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Dril Quip Valuation Drivers Correlation

Many accounts on the financial statements of Dril-Quip are highly interrelated and sometimes correlated. Consequently, when conducting Dril Quip's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Dril Quip
Click cells to compare fundamentals

Dril Quip Valuation Trend

Knowing Dril Quip's actual value is paramount for traders to make sound investment determinations. Dril Quip's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Dril Quip's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Dril Quip's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Dril Quip Market Cap

Dril-Quip is one of the top stocks in market capitalization category among related companies. Market capitalization of Oil & Gas Equipment & Services industry is currently estimated at about 1.11 Trillion. Dril Quip adds roughly 850.32 Million in market capitalization claiming only tiny portion of all equities under Oil & Gas Equipment & Services industry.
Capitalization  Valuation  Revenue  Workforce  Total debt

Dril Quip Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Dril Quip's current stock value. Our valuation model uses many indicators to compare Dril Quip value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Dril Quip competition to find correlations between indicators driving Dril Quip's intrinsic value. More Info.
Dril-Quip is one of the top stocks in beta category among related companies. It is one of the top stocks in price to sales category among related companies fabricating about  2.38  of Price to Sales per Beta. As of 6th of July 2022, Price to Sales Ratio is likely to grow to 2.65. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dril Quip by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dril Quip's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dril Quip's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Dril Quip's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Dril Quip and how it compares across the competition.

About Dril Quip Valuation

The equity valuation mechanism determines the current worth of Dril-Quip on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Dril-Quip. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Dril-Quip based exclusively on its fundamental and basic technical indicators. By analyzing Dril Quip's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Dril Quip's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dril Quip. We calculate exposure to Dril Quip's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dril Quip's related companies.
Last ReportedProjected for 2022
Gross Profit80.6 M82.7 M
Profit Margin(0.40) (0.41) 
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. The companys principal products include subsea and surface wellheads, subsea and surface production trees, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, as well as downhole tools. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The companys products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, and engineering and construction companies. The company was founded in 1981 and is headquartered in Houston, Texas.

Dril Quip Quarterly Enterprise Value

949.26 Million

Dril Quip Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Dril Quip does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio7.59
Revenue Growth2.30%
Enterprise Value To Ebitda-39.22
Enterprise Value To Revenue2.04

Dril Quip Current Valuation Indicators

Valuation refers to the process of determining the present value of Dril-Quip and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Dril Quip we look at many different elements of the entity such as Dril Quip's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Dril Quip's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Dril Quip's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Dril Quip, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Dril Quip's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Dril Quip's worth.
Continue to Investing Opportunities. Note that the Dril-Quip information on this page should be used as a complementary analysis to other Dril Quip's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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Is Dril Quip's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dril Quip. If investors know Dril Quip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dril Quip listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
839.8 M
Quarterly Revenue Growth YOY
0.023
Return On Assets
-0.0281
Return On Equity
-0.11
The market value of Dril-Quip is measured differently than its book value, which is the value of Dril Quip that is recorded on the company's balance sheet. Investors also form their own opinion of Dril Quip's value that differs from its market value or its book value, called intrinsic value, which is Dril Quip's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dril Quip's market value can be influenced by many factors that don't directly affect Dril Quip's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dril Quip's value and its price as these two are different measures arrived at by different means. Investors typically determine Dril Quip value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dril Quip's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.