Drilling Tools International Corp. (DTI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+134.0%

$3.46

vs $1.48 price

Levered DCF

$0.29

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.12

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021
P/E	-22.27×	34.64×	5.42×	9.57×	246.25×
P/B	0.71×	0.87×	0.91×	4.1×	23.7×
P/S	0.55×	0.68×	0.53×	1.56×	3.42×
EV / EBITDA	5.26×	5.8×	2.26×	5.28×	11.75×
Gross margin	57.0%	59.6%	63.3%	59.3%	69.5%
Operating margin	5.5%	8.7%	18.4%	19.5%	-8.1%
Net margin	-2.4%	2.0%	9.7%	16.3%	2.7%
Current ratio	2.11×	2.2×	2.08×	1.11×	0.61×
Debt / equity	0.58×	0.64×	0.21×	0.78×	2.45×
Interest coverage	1.74×	3.99×	25.29×	52.99×	-5.11×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021
Return on equity	-3.1%	2.5%	16.6%	42.9%	18.8%
Return on invested capital	4.4%	6.6%	18.2%	23.7%	-10.9%
Return on assets	-1.7%	1.4%	11.1%	20.0%	3.0%
Free cash flow yield	-2.2%	-16.1%	-25.4%	-5.3%	-4.5%
Earnings yield	-4.3%	2.9%	18.3%	10.5%	0.8%
Enterprise value	$155.1M	$175M	$93.3M	$237.5M	$291.8M
Net debt / EBITDA	2.31×	2.34×	0.31×	0.8×	1.1×
Cash conversion cycle (days)	137	128	54	60	3