NOV Inc.

Valuation Analysis

About the Company

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates in two segments, Energy Equipment, and Energy Products and Services. The Energy Products and Services segment offers drill bits and borehole enlargement products; independent drilling and intervention downhole tools equipment; frac plugs, frac sleeves, toe initiation burst port systems, and recyclable setting tools; electric submersible pumps, high viscosity pumps, and surface pumps; tubular coating and inspection services for drill-pipe and other oil country tubular goods; solids control and waste management equipment and services; data and digital solutions; precis

NOV Inc. Stock at a Glance

NOV Inc. (NOV) is currently trading at $21.13 with a market capitalization of $7.6B. The trailing P/E ratio stands at 84.52x, with a forward P/E of 16.04x. The 52-week range spans from $11.78 to $21.55; the current price is 1.9% below the yearly high. Year-over-year revenue growth stands at -2.4%. The net profit margin stands at 1.05%.

💰 Dividend

NOV Inc. pays an annual dividend of $0.35 per share, representing a yield of 1.66%. The payout ratio stands at 210%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

20 analysts rate NOV Inc. (NOV) on consensus: Hold. The average price target is $21.70, implying +2.7% from the current price. Analyst price targets range from $17.00 to $26.00.

NOV Inc.: The Investment Case in Detail

NOV Inc. (NOV) operates in the Energy — specifically Oil & Gas Equipment & Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue is contracting at -2.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 1.05%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion.

Valuation in Context

The PEG ratio at 1.31 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 9.29x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 16.04x is meaningfully below the trailing 84.52x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 95.7% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (15.43%).

Trading Data

💵 Dividend Info

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