• If you are wondering whether Weatherford International at around US$108.61 is still offering value after its run, this breakdown will help you see what the current price really reflects.
• The stock has seen a 14.0% gain over the last 30 days and a 34.3% return year to date, while the 1 year return sits at 151.7% despite a 1.5% decline over the past week.
• Recent news around Weatherford International has focused on its position within the broader energy services sector and how investors are pricing execution risk against its operational profile. Commentators have also highlighted how past multi year returns, including an 84.7% 3 year return and a very large 5 year return close to 9x, frame expectations for what comes next.
• On Simply Wall St’s valuation checks, Weatherford International scores 5 out of 6. Next, you will see how different valuation approaches line up on the stock and then look at a fuller way to think about value that goes beyond any single model.

Approach 1: Weatherford International Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting the company’s future cash flows and then discounting them back to today’s value. It is essentially asking what those future dollars are worth in today’s terms.

For Weatherford International, the model used is a 2 stage Free Cash Flow to Equity approach, based on cash flow projections in $. The latest twelve month free cash flow sits at about $442.7 million. Analyst estimates feed into the early years, with Simply Wall St extrapolating beyond that. For example, projected free cash flow is $471.2 million in 2026 and $670.0 million in 2028, with further estimates running out to 2035, all discounted back to arrive at today’s value.

On this basis, the DCF model indicates an intrinsic value of about $248.85 per share versus the recent share price of about $108.61. That implies an intrinsic discount of roughly 56.4%, suggesting the stock screens as materially undervalued on this framework.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Weatherford International is undervalued by 56.4%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

Approach 2: Weatherford International Price vs Earnings

For a profitable company, the P/E ratio is a useful way to see what investors are paying for each dollar of earnings. It ties the share price directly to current profitability, which makes it easier to compare across stocks in the same sector.

What counts as a “normal” or “fair” P/E usually reflects the earnings growth investors expect and the risks they see. Higher expected growth and lower risk can support a higher P/E, while lower growth or higher risk typically point to a lower multiple.

Weatherford International currently trades on a P/E of about 16.9x. This sits below the Energy Services industry average P/E of around 26.6x and also below the peer group average of roughly 54.4x. Simply Wall St’s “Fair Ratio” for Weatherford International is 18.8x, which is the P/E level suggested by its earnings growth profile, margins, industry, market cap and risk factors.

The Fair Ratio is more tailored than a simple comparison with peers or the broad industry because it adjusts for the company’s own growth, profitability and risk characteristics rather than assuming it should trade in line with averages.

Comparing the current P/E of 16.9x with the Fair Ratio of 18.8x suggests the stock screens as undervalued on this metric.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Weatherford International Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so this is where Narratives come in, giving you a simple story that links your view on Weatherford International to a forecast and then to a Fair Value that you can compare with the current price.

On Simply Wall St’s Community page, Narratives let you spell out how you think Weatherford’s business will play out, then tie that story to numbers like future revenue, earnings, margins and the P/E you believe is reasonable. This means the Fair Value that results is directly connected to your own assumptions rather than a generic model.

Because Narratives update when new earnings, news or forecasts are added, you can quickly see how fresh information shifts the Fair Value in your chosen story. You can then consider whether that change makes the current share price look more or less attractive to you as a potential buyer or seller.

For Weatherford, one Narrative with a lower Fair Value of about US$91.50 reflects assumptions such as 1.1% annual revenue growth and an 8.7% profit margin in three years. A more optimistic Narrative with a Fair Value of US$120.00 builds around 4.1% revenue growth and an 11.3% margin, which shows how different views on the same company can reasonably support very different Fair Values.

For Weatherford International, however, we will make it really easy for you with previews of two leading Weatherford International Narratives:

Fair Value: US$120.00

Implied discount to this Narrative: around 9.5% versus the recent US$108.61 share price

Revenue growth assumption: about 4.1% a year

• Focus on emerging markets in the Middle East and Asia alongside digital tools for well construction and production, aiming to widen Weatherford International’s reach and earnings base.
• Portfolio reshaping and cost efficiency programs are geared toward higher margin product lines, stronger free cash flow and a more resilient balance sheet.
• This view weighs opportunities in brownfield work, mature field recovery and lower emissions projects against risks such as energy transition, regulation, debt constraints and exposure to less stable geographies.

Fair Value: about US$105.36

Implied premium to this Narrative: roughly 3.1% versus the recent US$108.61 share price

Revenue growth assumption: about 2.3% a year

• Emphasis on advanced technology services and higher margin work, but with a more cautious stance on how weaker activity and pricing in some markets could affect earnings.
• Assumes tighter conditions in international regions such as Saudi Arabia and Mexico, with working capital, cash collection and pricing pressure all flagged as key watchpoints.
• Highlights the risk that ongoing divestments and exits from lower return operations may limit longer term scale if not offset by new opportunities.

If you want to see how other investors are joining the dots between these kinds of assumptions, earnings paths and fair values, See what the community is saying about Weatherford International.

Do you think there's more to the story for Weatherford International? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.