Market Cap : 5 B | Enterprise Value : 4.94 B | PE Ratio : At Loss | PB Ratio : 1.84 |
---|
NYSE:HP has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:HP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
As of today (2022-05-16), Helmerich & Payne's intrinsic value calculated from the Discounted Cash Flow model is $-8.93.
Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Helmerich & Payne's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.
Margin of Safety (FCF Based) using Discounted Cash Flow model for Helmerich & Payne is N/A.
The industry rank for Helmerich & Payne's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:
The historical data trend for Helmerich & Payne's Intrinsic Value: DCF (FCF Based) 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.
This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.
Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 9%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. We used the 10-Year Treasury Constant Maturity Rate as the risk free rate and rounded up to the nearest integer, then added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 5%
Growth Rate in the growth stage = average free cash flow growth rate in the past 10 years. If it is higher than 20%, we use 20%. If it is less than 5%, we use 5% instead. =>
For companies with Average Free Cash Flow Growth Rate in the past 10 years less than 5%, GuruFocus defaults => Growth Rate: 5%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. Free Cash Flow per Share: fcf = $-0.659.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Helmerich & Payne's Intrinsic Value: DCF (FCF Based) for today is calculated as
Intrinsic Value: DCF (FCF Based) | = | Free Cash Flow per Share | * | {[(1+g1)/(1+d) | + | (1+g1)^2/(1+d)^2 | + | ... | + | (1+g1)^10/(1+d)^10] |
+ | (1+g1)^10/(1+d)^10 | * | [(1+g2)/(1+d) | + | (1+g2)^2/(1+d)^2 | + | ... | + | (1+g2)^10/(1+d)^10]} |
set x = (1+g1)/(1+d) = (1+0.05)/(1+0.09) = 0.96330275229358
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.09) = 0.95412844036697
Intrinsic Value: DCF (FCF Based) | = | Free Cash Flow per Share | * | {[x | + | x^2 | + | ... | + | x^10] | + | x^10 | * | [y | + | y^2 | + | ... | + | y^10]} |
= | Free Cash Flow per Share | * | [x | * | (1-x^10) | / | (1-x) | + | x^10 | * | y | * | (1-y^10) | / | (1-y)] | |||||
= | -0.659 | * | 13.5514 | |||||||||||||||||
= | -8.93 |
Margin of Safety (FCF Based) | = | (Intrinsic Value: DCF (FCF Based) | - | Current Price) | / | Intrinsic Value: DCF (FCF Based) |
= | (-8.93 | - | 47.48) | / | -8.93 | |
= | N/A |
* 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.
Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.
What you need to know about the DCF model:
1. The DCF model evaluates a company based on its future earnings powerYou can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.
Thank you for viewing the detailed overview of Helmerich & Payne's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.
Adams Raymond John Iii | officer: VP Digital Ops Marketing Sales | 1437 S. BOULDER AVE. SUITE 1400 TULSA OK 74119 |
Smith Mark W. | officer: Senior VP and CFO | 15835 PARK TEN PLACE DRIVE HOUSTON TX 77084 |
Mas Jose Ramon | director | 800 DOUGLAS ROAD, 12TH FLOOR CORAL GABLES FL 33134 |
Rust Edward B Jr | director | MCGRAW-HILL COMPANIES 1221 AVENUE OF THE AMERICAS NEW YORK NY 10020 |
Bellinger Delaney Murchison | director | 524 E. 24TH STREET HOUSTON TX 77008 |
Cramton Kevin G. | director | 502 SAINT DAVIDS AVENUE WAYNE PA 19087 |
Petrie Thomas A. | director | 1437 S. BOULDER AVE., SUITE 1400 TULSA OK 74119 |
Helmerich Hans | director | C/O CIIRMAREX ENERGY CO 707 17TH ST. #3300 DENVER CO 80202-3404 |
Zeglis John D | director | 7277 164TH AVE NE BLDG1 REDMOND WA 98052 |
Foutch Randy A | director | 15 W. SIXTH STREET SUITE, 1800 TULSA OK 74119 |
Robillard Donald F Jr | director | 1437 S. BOULDER AVE. TULSA OK 74119 |
Vandeweghe Mary M | director | 1601 W. DIEHL ROAD NAPERVILLE IL 60563 |
Benson Todd Willard | officer: President of H&P Technologies | 1437 S. BOULDER AVENUE SUITE 1400 TULSA OK 74119 |
Bell John R. | officer: VP, Drilling Subsidiary | 1437 S. BOULDER AVE. TULSA OK 74119 |
Lennox Michael | officer: VP, Drilling Subsidiary | 1437 S. BOULDER AVE., SUITE 140 TULSA OK 74119 |
From GuruFocus
By James Li 08-17-2020
By Scott Waxler 11-24-2020
Other Sources
By Zacks 2022-03-17
By Zacks 2021-12-21
By Zacks 2022-01-18
By Zacks 2021-11-17
By Seekingalpha 2022-02-01
By Zacks 2022-02-11
By Seekingalpha 2021-10-13
By Zacks 2021-12-31
By Seekingalpha 2021-11-18
By Zacks 2022-03-16
By Zacks 2021-09-07
By Zacks 2022-02-08
By Zacks 2022-01-27
By Zacks 2022-03-09