2 models fit Patterson-UTI Energy Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
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Valued as a cyclical company: EV/EBITDA comparison and Discounted cash flow.
ACCE opinionPatterson-UTI Energy Inc. Common Stock (PTEN)
Fair value (2 models)
$10.28
ACCE price target
$11.40
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $9.79 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $11.97 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
16.5% above
-14.2% to fair value
ACCE score
47
out of 100
Analysts
56% buy
16 covering
P/E
0.0x
forward 36.0x
1-year return
+77.1%
Dividend yield
3.17%
Patterson-UTI Energy Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Patterson-UTI runs land and offshore-adjacent contract drilling rigs and pressure pumping fleets for North American oil and gas operators, with a pressure pumping business that services completions. The company's edge is scale and fleet utilization in the Permian and other U.S. basins, where rig count and fracking demand drive its contracted day rates. Revenue growth of 0.7% and an operating margin of -0.5% show a business that has not yet converted its activity into earnings, with ROE at -2.8% and a gross margin of 23.8%. The forward P/E of 35.7 against a trailing P/E of zero implies the market is pricing a recovery in drilling and completions activity, so the case rests on whether margins can turn positive as commodity-linked demand firms. At a 4.3B market cap and a composite score of 49/100, it is a cyclical turnaround candidate worth a deeper look only if you have a view on U.S. oil activity over the next several quarters.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings collapse
Earnings are down 97.9% year over year, with operating margin at -0.5% and net margin at -1.9%. The business is barely covering costs at the operating line.
moderate
Revenue growth stalled
Revenue is up only 0.7% year over year and fell 2.9% quarter over quarter, far below the 33.8% five-year revenue CAGR.
moderate
Heavy insider selling
Insiders recorded $7.71M in sales across the last 10 disclosed transactions and no buys, which is a one-directional signal worth weighing.
moderate
Elevated short interest
Short interest sits at 9.6%, meaningful bearish positioning that could amplify moves in either direction.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $372M, and the stock's free cash flow yield stands at 8.5%.
Analysts' mean price target sits $13.93, and 56% (9 of 16) of covering analysts rate the stock Buy or Strong Buy.
The diluted share count fell 3.5% last fiscal year, and the stock pays a 3.2% dividend yield.
Why it could disappoint
Net margin is -1.9% and return on equity is -2.8%, so the business is not yet earning a profit on shareholder money.
The stock trades 16.5% above the model fair value of $10.28, and at a forward P/E of 35.7x.
Revenue grew only 0.7% year over year, far below the 33.8% five-year average, and the latest earnings surprise was -100.0%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where PTEN's valuation models land
Price
$11.97
Model fair value
$10.28
Model range
$8.02 to $12.53
Fair value $10.28
Price $11.97
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores