As of June 21, 2025, Liberty Oilfield Services Inc's estimated intrinsic value ranges from $19.85 to $45.43 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $23.68 | +80.4% |
| Discounted Cash Flow (5Y) | $19.85 | +51.2% |
| Dividend Discount Model (Multi-Stage) | $24.16 | +84.0% |
| Dividend Discount Model (Stable) | $20.08 | +53.0% |
| Earnings Power Value | $45.43 | +246.0% |
Is Liberty Oilfield Services Inc (LBRT) undervalued or overvalued?
With the current market price at $13.13, 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 Liberty Oilfield Services Inc'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 | 1.09 | 1.24 |
| Cost of equity | 8.9% | 11.8% |
| Cost of debt | 4.8% | 11.4% |
| Tax rate | 11.8% | 18.3% |
| Debt/Equity ratio | 0.21 | 0.21 |
| After-tax WACC | 8.1% | 11.4% |
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 | $20 | $3,681M | 70.3% |
| 10-Year Growth | $24 | $4,302M | 54.0% |
| 5-Year EBITDA | $18 | $3,451M | 68.3% |
| 10-Year EBITDA | $22 | $4,019M | 50.7% |
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 | $739M |
| Discount Rate (WACC) | 11.4% - 8.1% |
| Enterprise Value | $6,502M - $9,145M |
| Net Debt | $467M |
| Equity Value | $6,036M - $8,679M |
| Outstanding Shares | 162M |
| Fair Value | $37 - $54 |
| Selected Fair Value | $45.43 |
| Metric | Value |
|---|---|
| Market Capitalization | $2126M |
| Enterprise Value | $2593M |
| Trailing P/E | 8.36 |
| Forward P/E | 6.90 |
| Trailing EV/EBITDA | 3.55 |
| Current Dividend Yield | 225.05% |
| Dividend Growth Rate (5Y) | 82.03% |
| Debt-to-Equity Ratio | 0.21 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $7.10 |
| Discounted Cash Flow (5Y) | 25% | $4.96 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.83 |
| Dividend Discount Model (Stable) | 15% | $3.01 |
| Earnings Power Value | 10% | $4.54 |
| Weighted Average | 100% | $24.45 |
Based on our comprehensive valuation analysis, Liberty Oilfield Services Inc's weighted average intrinsic value is $24.45, which is approximately 86.2% above the current market price of $13.13.
Key investment considerations:
Given these factors, we believe Liberty Oilfield Services Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.