BORR Valuation

Borr Drilling Ltd

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3.180

-0.03(-0.935%)1D

BORR Relative Valuation

BORR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BORR is overvalued; if below, it's undervalued.

Historical Valuation

Borr Drilling Ltd (BORR) is now in the Undervalued zone, suggesting that its current forward PS ratio of 3.18 is considered Undervalued compared with the five-year average of 7.66. The fair price of Borr Drilling Ltd (BORR) is between 8.07 to 9.02 according to relative valuation methord. Compared to the current price of 3.18 USD , Borr Drilling Ltd is Undervalued By 60.57%.

Relative Value

Fair Zone

8.07-9.02

Current Price：3.18

60.57%

Undervalued

-62.48

Trailing

Forward

6.24

EV/EBITDA

Borr Drilling Ltd. (BORR) has a current EV/EBITDA of 6.24. The 5-year average EV/EBITDA is 24.41. The thresholds are as follows: Strongly Undervalued below -65.48, Undervalued between -65.48 and -20.54, Fairly Valued between 69.35 and -20.54, Overvalued between 69.35 and 114.29, and Strongly Overvalued above 114.29. The current Forward EV/EBITDA of 6.24 falls within the Historic Trend Line -Fairly Valued range.

9.12

EV/EBIT

Borr Drilling Ltd. (BORR) has a current EV/EBIT of 9.12. The 5-year average EV/EBIT is -65.37. The thresholds are as follows: Strongly Undervalued below -711.26, Undervalued between -711.26 and -388.31, Fairly Valued between 257.58 and -388.31, Overvalued between 257.58 and 580.52, and Strongly Overvalued above 580.52. The current Forward EV/EBIT of 9.12 falls within the Historic Trend Line -Fairly Valued range.

3.18

Borr Drilling Ltd. (BORR) has a current PS of 3.18. The 5-year average PS is 1.25. The thresholds are as follows: Strongly Undervalued below 0.05, Undervalued between 0.05 and 0.65, Fairly Valued between 1.85 and 0.65, Overvalued between 1.85 and 2.44, and Strongly Overvalued above 2.44. The current Forward PS of 3.18 falls within the Strongly Overvalued range.

4.44

P/OCF

Borr Drilling Ltd. (BORR) has a current P/OCF of 4.44. The 5-year average P/OCF is 6.85. The thresholds are as follows: Strongly Undervalued below -15.83, Undervalued between -15.83 and -4.49, Fairly Valued between 18.19 and -4.49, Overvalued between 18.19 and 29.53, and Strongly Overvalued above 29.53. The current Forward P/OCF of 4.44 falls within the Historic Trend Line -Fairly Valued range.

6.04

P/FCF

Borr Drilling Ltd. (BORR) has a current P/FCF of 6.04. The 5-year average P/FCF is -2.56. The thresholds are as follows: Strongly Undervalued below -123.10, Undervalued between -123.10 and -62.83, Fairly Valued between 57.71 and -62.83, Overvalued between 57.71 and 117.98, and Strongly Overvalued above 117.98. The current Forward P/FCF of 6.04 falls within the Historic Trend Line -Fairly Valued range.

Borr Drilling Ltd (BORR) has a current Price-to-Book (P/B) ratio of 0.80. Compared to its 3-year average P/B ratio of 1.34 , the current P/B ratio is approximately -40.55% higher. Relative to its 5-year average P/B ratio of 0.98, the current P/B ratio is about -18.58% higher. Borr Drilling Ltd (BORR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -19.31%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -23.22% , the current FCF yield is about -100.00% lower.

0.80

P/B

Median3y

1.34

Median5y

0.98

-26.30

FCF Yield

Median3y

-19.31

Median5y

-23.22

Competitors Valuation Multiple

The average P/S ratio for BORR's competitors is 32.81, providing a benchmark for relative valuation. Borr Drilling Ltd Corp (BORR) exhibits a P/S ratio of 3.18, which is -90.31% above the industry average. Given its robust revenue growth of 14.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Nabors Industries Ltd

Precision Drilling Corp

Patterson-UTI Energy Inc

Helmerich and Payne Inc

26.19

49.19%

2.60B

Performance Decomposition

Market capitalization of BORR decreased by 14.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.01 to 10.03.

The secondary factor is the Revenue Growth, contributed 14.69%to the performance.

Overall, the performance of BORR in the past 1 year is driven by Margin Expansion. Which is more sustainable.

14.69%

241.60M → 277.10M

Revenue Growth

150.12%

4.01 → 10.03

Margin Expansion

-179.33%

-14.32 → 11.36

P/E Change

-14.52%