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Shares of Diamond Offshore Drilling Rank the Highest in Terms of EV/EBITDA Ratio in the Oil & Gas Drilling Industry (DO, UNT, PTEN, HP, NBR)

By David Diaz

Below are the three companies in the Oil & Gas Drilling industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Diamond Offshore Drilling ranks highest with a an EV/EBITDA ratio of 140.89. Unit Corp is next with a an EV/EBITDA ratio of 26.68. Patterson-UTI Energy ranks third highest with a an EV/EBITDA ratio of 18.64.

Helmerich & Payne follows with a an EV/EBITDA ratio of 11.36, and Nabors Industries rounds out the top five with a an EV/EBITDA ratio of 9.03.

SmarTrend recommended that its subscribers protect gains by selling shares of Nabors Industries on February 7th, 2017 by issuing a Downtrend alert when the shares were trading at $15.63. Since that call, shares of Nabors Industries have fallen 47.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio Diamond Offshore Drilling unit corp patterson-uti energy helmerich & payne Nabors Industries

Ticker(s): DO UNT PTEN HP NBR