Nabors Industries (NBR), What Is Behind The Fresh Attention?
Nabors Industries (NYSE:NBR) drew fresh attention after raising its full-year 2026 EBITDA outlook to a range of US$920 million to US$930 million, reflecting stronger recent execution in international drilling markets including Saudi Arabia.
See our latest analysis for Nabors Industries.
The upgraded EBITDA outlook comes after a strong run for Nabors Industries, with the share price delivering a 66.81% year to date share price return and a 156.34% 1 year total shareholder return, even though the 3 year total shareholder return declined 14.8%.
If this kind of move has your attention, it can be helpful to see what else is gaining traction in energy and infrastructure. You can start with our 39 power grid technology and infrastructure stocks
After a 1 year total shareholder return above 150% and a higher 2026 EBITDA outlook, Nabors Industries now asks you to weigh strong execution against capital needs and geopolitical risk. Does that balance still favour new buyers at today’s price?
Most Popular Narrative: 14.8% Undervalued
Against the last close of $92.41, the most followed narrative pegs Nabors Industries at a fair value of $108.50, using a 9.49% discount rate to frame that gap.
The acceleration of national energy security initiatives, particularly in regions like the Middle East, is driving significant new multi-year drilling rig awards (for example, SANAD joint venture's 10-year, 50-rig program with firm deployment milestones). This is providing unmatched contract visibility and undergirding multi-year backlog, which enhances future earnings visibility.
Want to see what sits behind that fair value for Nabors Industries? The narrative leans heavily on contracted rig volumes, margin assumptions, and future earnings multiples. Curious how those moving parts add up.
Result: Fair Value of $108.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Nabors Industries narrative could be challenged if U.S. rig margins stay under pressure or if international projects face further delays and higher capital demands.
Find out about the key risks to this Nabors Industries narrative.
Another View On Nabors Industries Valuation
The narrative around Nabors Industries leans on a fair value of $108.50, which suggests the stock is undervalued at $92.41. The preferred P/E ratio view complicates that picture. At 6.6x earnings versus a fair ratio of 5.2x, the stock screens expensive on this metric even though it trades well below the US Energy Services industry average of 25.6x and a peer average of 41.3x. That gap can either be a cushion or a warning depending on how you think earnings and sentiment will shift.
To see how the numbers stack up when you focus on earnings multiples and where the fair ratio suggests markets could move, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
This mix of optimism and caution around Nabors Industries only matters if you test it against the numbers yourself and move before sentiment shifts. To see both sides laid out clearly, review the 2 key rewards and 3 important warning signs
Looking for more investment ideas beyond Nabors Industries?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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