Precision Drilling (NYSE:PDS) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Precision Drilling Forward PE Ratio Related Terms
Precision Drilling Forward PE Ratio Historical Data
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The historical data trend for Precision Drilling's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Precision Drilling Forward PE Ratio Chart
Precision Drilling Annual Data
Trend
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
6.61
5.01
8.19
11.83
Precision Drilling Quarterly Data
2018-09
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
69.44
6.27
6.61
4.31
4.79
5.30
5.01
10.41
10.65
7.33
8.19
8.05
11.40
11.32
11.83
17.91
PDS vs NE, RIG, VAL: Forward PE Ratio Comparison
For the Oil & Gas Drilling subindustry, Precision Drilling's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Precision Drilling Forward PE Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Precision Drilling's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Precision Drilling's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Precision Drilling (PDS) has a Forward PE Ratio of 16.05 as of Jul. 10, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Precision Drilling and its competitors. According to the industry distribution chart, Precision Drilling ranks #376 out of 542 companies in the Oil & Gas industry, placing it in the top 69.4%.
Is Precision Drilling's Forward PE Ratio too high?
Precision Drilling's current Forward PE Ratio is 16.05. The Oil & Gas industry median Forward PE Ratio is 10.81. Precision Drilling's value of 16.05 is 48.5% above this industry median. Based on the distribution chart, Precision Drilling ranks #376 out of 542 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Precision Drilling has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Drilling's Forward PE Ratio compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Precision Drilling ranks #376 out of 542 companies for Forward PE Ratio. This places Precision Drilling in the lower half of its industry. The industry median Forward PE Ratio is 10.81. Precision Drilling's value of 16.05 is 48.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Oil & Gas company?
The median Forward PE Ratio among Oil & Gas companies is 10.81, based on 542 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Drilling's current Forward PE Ratio of 16.05 is 48.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Precision Drilling and its competitors. For the Oil & Gas industry, the median Forward PE Ratio is 10.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Drilling's current Forward PE Ratio is 16.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Drilling stock overvalued right now?
Based on GuruFocus' analysis, Precision Drilling (PDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $66.63, compared to a current price of $80.34 — trading 20.6% above its estimated fair value. The current Forward PE Ratio is 16.05 and 48.5% above the Oil & Gas industry median of 10.81. Precision Drilling's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Precision Drilling (PDS), the current Forward PE Ratio is 16.05 as of Jul. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Precision Drilling (PDS) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Drilling stock appears to be overvalued.
The current stock price of $80.34 is trading 20.6% above its estimated GF Value™ of $66.63.
GuruFocus considers Precision Drilling to be Modestly Overvalued.
Key valuation signals for PDS:
Forward PE Ratio: 16.05
GF Value™: $66.63 vs. price of $80.34 (20.6% above fair value)
Industry Position: 48.5% above the Oil & Gas median (#376 of 542)
No single metric tells the full story. See the PDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Drilling Corp is a provider of contract drilling, completion, and production services to oil and natural gas exploration and production companies in Canada, the United States, and certain international locations. The company operates through two industry segments: Contract Drilling Services, which generates maximum revenue and includes drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale, and repair of drilling equipment; and Completion and Production Services, which includes service rigs, oilfield equipment rental, and camp services. The company generates the majority of its revenue from the United States.
73GF Score
Get the complete analysis for PDS
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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