VAL

Valaris Limited

Fundamental data last updated:October 6, 2026

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company profile

SECTOR

Energy

industry

Oil & Gas Equipment & Services

Exchange

NYSE

County of HQ

BM

Next Earnings Date

Pending Announcement

Business Summary

Valaris Limited provides offshore contract drilling services to the international oil and gas industry. The company owns an offshore drilling rig fleet of 56 rigs, which include 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. It serves international, government-owned, and independent oil and gas companies in the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.

 


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VALUATION

P/E

6.38

Market Cap ($M USD)

$6.41B

Forward P/E

9.68

PEG

-0.28

PRICE TO SALES

2.90

PRICE TO BOOK

2.03

EV / EBITDA

10.80

5-Year Average P/E

Free Cash Flow Yield

1.82%

DCF Value

$-66.83

Graham Number

$122.14

Price to FCF

54.98

EV to FCF

59.86

Earnings Yield

15.67%

FCF Yield

1.82%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$14.51

Next Year EPS Growth Estimate

$9.57

Next Year Revenue Growth Estimate

$2.55B

Return on Equity (ROE)

36.16%

FREE CASH FLOW

Operating Margin

16.74%

Debt-to-Equity

0.38

Piotroski F-Score

4

Altman Z-Score

3.16

Return on Invested Capital (ROIC)

8.08%

Current Ratio

1.48

Quick Ratio

1.48

Net Debt to EBITDA

0.88

Interest Coverage

3.75

Gross Profit margin

24.50%

FCF PER SHARE

$1.69

REVENUE PER SHARE

$31.99

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Gainseekers Quantitative Analysis

Summary

Valaris Limited’s valuation presents a perplexing narrative. Despite a Price/Earnings ratio suggesting undervaluation, the stock traded significantly above its DCF Value, indicating potential overpricing. The Graham Number suggests a more conservative intrinsic value, yet the Forward P/E hints at tempered future growth expectations. With an Earnings Yield of 15.27% and a robust Altman Z-score of 3.21, the company appears financially sound, but the market may be pricing in risks not immediately evident in its fundamentals.

AI Exposure / Tech Reliance

Operating in the Oil & Gas Equipment & Services industry, Valaris is positioned to leverage AI for operational efficiencies and predictive maintenance. However, the sector's traditional nature might slow tech adoption compared to more agile industries. Their resilience will depend on integrating AI into existing processes to enhance service delivery.

The Bull Case

For the value-driven investor, Valaris offers compelling reasons to buy. A Return on Equity of 36.16% underscores its capital efficiency, while a Piotroski F-Score of 4 indicates moderate financial health. Despite a low FCF Yield, the company's operating margin of 16.74% suggests strong pricing power. These metrics paint a picture of a company capable of generating solid returns on invested capital.

The Bear Case

Valaris faces significant structural risks, particularly with its valuation metrics. The Price/Book and Price/Sales ratios suggest the stock is not cheap, and its EV to FCF ratio of 61.28 indicates poor cash flow generation relative to enterprise value. Trading close to its 52-week high, the stock appears technically overextended, raising concerns about its current price sustainability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$96.00

Institutional Ownership %

1-Year Beta

0.97

Insider Buying % (6 Mo)

Distance to 52-Week High

23.20%

Distance to 52-Week Low

59.20%

EARNINGS SURPRISE %

-380.00%

50-DAY SMA

$97.61

200-DAY SMA

$69.35

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.