NOV Inc. (NOV) Stock Valuation — PE Analysis
Oil & Gas Equipment & Services · NYSE
Current Price
$21.13
PE Ratio (TTM)
82.9x
Intrinsic Value
$16.65
-26.9% margin of safety
COMPETITIVE MOAT
↑Integrated Solutions Provider
NOV offers a comprehensive suite of equipment and services across the oil and gas lifecycle. This integration creates sticky customer relationships and operational efficiencies.
↑Technological Innovation
The company invests in R&D to develop advanced drilling and production technologies. This allows them to offer differentiated solutions that enhance efficiency and safety for clients.
↑Global Service Network
NOV's extensive global footprint enables them to provide timely support and maintenance worldwide. This reach is crucial for offshore and remote operations.
INVESTMENT RISKS
↓Commodity Price Volatility
Earnings are highly sensitive to fluctuations in oil and gas prices. Downturns can significantly reduce demand for NOV's equipment and services.
↓Geopolitical Disruptions
Recent Middle East disruptions impacted operations, highlighting vulnerability to regional conflicts. These events can disrupt supply chains and project timelines.
↓Energy Transition Headwinds
The global shift towards renewable energy sources poses a long-term threat to demand for oil and gas equipment. NOV must adapt its offerings to this evolving landscape.
Base case
NOV base case PE valuation
A base case PE valuation for NOV estimates a fair value of about $16.65 per share, against a current price of $21.13. The model assumes 14.4% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$16.65
Margin of safety
-26.9%
Expected annual return
-4.7%
Base case assumptions: 14.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NOV PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for NOV Inc. respond.
Open PE Calculator for NOVCompany Overview
NOV Inc. is a global leader in designing, manufacturing, and marketing essential systems, components, and products for the oil and gas drilling and production industries, as well as for industrial and renewable energy sectors worldwide. The company's operations are divided into three core segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment provides a range of offerings including solids control and waste management equipment, portable power generation units, drill and wired pipes, advanced drilling optimization and automation services, and comprehensive tubular inspection, repair, and coating services. This segment also supplies instrumentation, measuring and monitoring tools, downhole and fishing tools, steerable drilling technologies, and drill bits. The Completion & Production Solutions segment specializes in equipment and technologies for hydraulic fracture stimulation, encompassing downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowlines, and manifolds. They also offer coiled tubing units, wireline units and tools, and various connections and liner hangers. For onshore production, solutions include composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems. Offshore production is supported by floating production systems and subsea production technologies. Additionally, this segment manufactures industrial pumps and mixers. The Rig Technologies segment focuses on drilling rig infrastructure and machinery. This includes substructures, derricks, masts, cranes, jacking systems, and sophisticated pipe lifting, racking, rotating, and assembly systems. They also supply mud pumps, pressure control equipment, drives and generators, and integrated rig instrumentation and control systems. Furthermore, this segment provides mooring, anchor, and deck handling machinery, specialized equipment components for offshore wind construction vessels, and complete pipelay and construction systems. Beyond product sales, NOV Inc. offers vital after-sales support, such as spare parts, repair services, and rental options. Their comprehensive service portfolio includes remote equipment monitoring, expert technical support, on-site field service, and extensive customer training programs. Founded in 1862 and based in Houston, Texas, the company was formerly known as National Oilwell Varco, Inc. before officially changing its name to NOV Inc. in January 2021.
Financial Metrics — NOV PE Stock Valuation Data
PE Ratio (TTM)
82.9x
PEG Ratio
n/m
Earnings Yield
1.21%
ROE (TTM)
1.4%
Revenue/Share (TTM)
$24.08
Dividend Yield
1.99%
Debt/Equity
0.38x
Frequently Asked Questions
What is the PE ratio of NOV?
The trailing twelve-month PE ratio of NOV reflects how much investors pay per dollar of NOV Inc.'s earnings. This metric is most useful when compared to Oil & Gas Equipment & Services peers and the company's own historical range.
Is NOV overvalued based on PE ratio?
NOV's PE of 82.9x combined with a PEG ratio of -0.99 provides a growth-adjusted perspective. NOV has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Equipment & Services, a DCF analysis may be more appropriate.
How do I value NOV stock using PE ratio?
To value NOV Inc. using PE: (1) Compare the current PE (82.9x) against the Oil & Gas Equipment & Services median to assess relative pricing, (2) check the PEG ratio (-0.99) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of NOV?
NOV's PEG ratio is -0.99, calculated by dividing the PE ratio (82.9x) by the expected earnings growth rate. Because NOV has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NOV stock valuation?
PE ratio gives a quick relative read — how NOV is priced versus Oil & Gas Equipment & Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See NOV DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value NOV with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.