Weatherford International plc (WFRD) DCF Valuation
TGM's two-stage DCF values Weatherford International plc (WFRD) between $103.94 and $198.64 depending on assumptions, with a base case of $141.45. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.2%) reflects its beta.
What would today's price require?
$101.31 is justified only if free cash flow grows about +0.7% a year (fading to 2.5% long-run) at a 8.2% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.1%/yr | 9.2% | $103.94 |
| Base case | 8.1%/yr | 8.2% | $141.45 |
| Optimistic | 11.1%/yr | 7.2% | $198.64 |
| Analyst DCF (FMP) | independent reference — different model | $256.21 | |
Current Price
$101.31
Market-Implied Growth
+0.7%/yr
vs +8.1% 5Y actual
Model Scenario Range
$103.94 – $198.64
model output — not a price target
WFRD DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WFRD (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $471.5M · 0.07B shares · net debt $560.0M
Estimated Fair Value
$174.23
+72.0% vs $101.31
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $101.31; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.2% | $234 | $255 | $281 | $317 | $365 |
| 7.2% | $188 | $201 | $216 | $236 | $260 |
| 8.2% | $156 | $164 | $174 | $186 | $200 |
| 9.2% | $132 | $138 | $145 | $153 | $162 |
| 10.2% | $114 | $119 | $123 | $129 | $135 |
About Weatherford International plc
Weatherford International plc is a prominent energy services enterprise that supplies an extensive range of equipment and specialized services on a global scale. The company supports the full lifecycle of oil, geothermal, and natural gas wells, covering initial drilling, thorough evaluation, well completion, ongoing production, and crucial intervention activities. Its operations are organized into two main geographical divisions: the Western Hemisphere and the Eastern Hemisphere. Weatherford's diverse offerings include numerous artificial lift systems, such as reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid configurations, alongside their associated automation and control systems. They also deliver pressure pumping and reservoir stimulation solutions, encompassing acidizing, hydraulic fracturing, cementing, and coiled-tubing interventions. For well assessment, the company provides drill stem testing tools, surface well testing, and multiphase flow measurement services. Furthermore, Weatherford furnishes essential safety tools, downhole reservoir monitoring systems, flow control mechanisms, and multistage fracturing equipment. This is complemented by sand-control technologies and various production and isolation packers. For well construction, they supply robust liner hangers engineered for challenging high-temperature and high-pressure conditions, as well as a full suite of cementing products designed for zonal isolation, including plugs, float and stage equipment, and torque-and-drag reduction technology. These offerings are supported by expert pre-job planning and installation. In the domain of drilling, Weatherford excels in directional drilling services and real-time logging while drilling. Their advanced drilling technologies feature rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs. They also provide rotating control devices and sophisticated automated control systems, alongside specialized drilling services like closed-loop, air, managed-pressure, and underbalanced drilling. Comprehensive logging capabilities extend to both open and cased holes, with dedicated intervention and remediation services addressing well integrity and performance. Lastly, the company manages tubulars through handling, management, and connection services. They also facilitate re-entry, fishing, wellbore cleaning, and well abandonment services, utilizing patented bottom-hole assemblies, specialized tubular-handling equipment, pressure-control equipment, and drill pipe and collars. Weatherford International plc was established in 1972 and maintains its headquarters in Houston, Texas.
- Sector
- Energy
- Industry
- Oil & Gas Equipment & Services
- CEO
- Girishchandra K. Saligram