As of June 14, 2025, Civeo Corp's estimated intrinsic value ranges from $21.26 to $112.90 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $34.15 | +53.4% |
| Discounted Cash Flow (5Y) | $30.10 | +35.2% |
| Dividend Discount Model (Multi-Stage) | $21.26 | -4.5% |
| Earnings Power Value | $112.90 | +407.2% |
Is Civeo Corp (CVEO) undervalued or overvalued?
With the current market price at $22.26, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Civeo Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.5 | 0.8 |
| Cost of equity | 6.2% | 9.4% |
| Cost of debt | 6.4% | 23.9% |
| Tax rate | 35.2% | 47.7% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 5.9% | 9.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $30 | $464M | 82.5% |
| 10-Year Growth | $34 | $518M | 66.2% |
| 5-Year EBITDA | $29 | $448M | 81.9% |
| 10-Year EBITDA | $33 | $510M | 65.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $116M |
| Discount Rate (WACC) | 9.8% - 5.9% |
| Enterprise Value | $1,186M - $1,969M |
| Net Debt | $59M |
| Equity Value | $1,127M - $1,910M |
| Outstanding Shares | 13M |
| Fair Value | $84 - $142 |
| Selected Fair Value | $112.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $299M |
| Enterprise Value | $358M |
| Trailing P/E | 0.00 |
| Forward P/E | 124.34 |
| Trailing EV/EBITDA | 8.45 |
| Current Dividend Yield | 472.68% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.15 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $10.25 |
| Discounted Cash Flow (5Y) | 29% | $7.53 |
| Dividend Discount Model (Multi-Stage) | 24% | $4.25 |
| Earnings Power Value | 12% | $11.29 |
| Weighted Average | 100% | $39.19 |
Based on our comprehensive valuation analysis, Civeo Corp's weighted average intrinsic value is $39.19, which is approximately 76.1% above the current market price of $22.26.
Key investment considerations:
Given these factors, we believe Civeo Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.