Dnow Inc. logo DNOW - Dnow Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 8
HOLD 7
SELL 1
STRONG
SELL
0
| PRICE TARGET: $16.50 DETAILS
HIGH: $17.00
LOW: $16.00
MEDIAN: $16.50
CONSENSUS: $16.50
UPSIDE: 26.44%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Oil & Gas E&P 85% confidence

Primary model: FCF at Price Deck × Multiple

Valuation Signal Overvalued Mild
Trading 4.1% above fair value
Current Price $13.05
Bear Case $5.86 55.1% downside ($5.86 - $13.05) / $13.05 = -55.1% FCF $104M × 10x
Fair Value $12.53 4.0% downside ($12.53 - $13.05) / $13.05 = -4.0% FCF $134M × 13x
Bull Case $20.92 60.3% upside ($20.92 - $13.05) / $13.05 = 60.3% FCF $164M × 16x

Adjust Assumptions

75.0$/bbl
13.0x

Key Value Driver

Oil price assumption ($75/bbl base case)

Implied Market Multiple 14.6x

Plain-Language Summary

Our base-case estimate uses a valuation based on free cash flow under different commodity price assumptions and a valuation multiple. We then blend that result with the average analyst price target of $16.50 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $12.53 per share.

Warnings

Where you think oil prices will settle long-term drives over 80% of this valuation. The biggest risk isn't the company itself — it's getting the commodity price wrong.
Wall Street's average price target is $16.50 (from 16 analysts). Our estimate is 32% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — commodity volumes do not compound
  • Geopolitical premiums are real but historically temporary
  • Reserve replacement ratio below 100% for 3 years is existential