Weatherford International plc (WFRD)

Oil & Gas Field Machinery & Equipment

Latest Price

$90.63

TTM P/E

16.16

Normalized P/E

22.54

TTM Div Yield

1.19%

Fwd Div Yield

1.21%

Book Value

27.29

P/B Ratio

3.32

Valuation metrics

EPS: $5.93

Book value / share: $23.73

Formula: √(22.5 × EPS × BVPS)

Graham Number

$56.27

38% downside

Norm. op. income: $584M (median of 6yr)

Tax rate: 22%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$57.39

37% downside

Base FCF: $450M (median of recent 5yr)

Growth: -8%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$34.38

62% downside

EPS: $5.93

Target P/E: 23×

Formula: EPS × P/E

P/E Fair Value

$136.39

+50% upside