RIG Relative Valuation
RIG'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, RIG is overvalued; if below, it's undervalued.
Historical Valuation
Transocean Ltd (RIG) is now in the Fair zone, suggesting that its current forward PS ratio of 1.18 is considered Fairly compared with the five-year average of 24.71. The fair price of Transocean Ltd (RIG) is between 3.19 to 5.18 according to relative valuation methord.
Relative Value
Fair Zone
3.19-5.18
Current Price：4.33
Fair
20.62
PE
1Y
3Y
5Y
7.17
EV/EBITDA
Transocean Ltd. (RIG) has a current EV/EBITDA of 7.17. The 5-year average EV/EBITDA is 9.67. The thresholds are as follows: Strongly Undervalued below 5.53, Undervalued between 5.53 and 7.60, Fairly Valued between 11.74 and 7.60, Overvalued between 11.74 and 13.81, and Strongly Overvalued above 13.81. The current Forward EV/EBITDA of 7.17 falls within the Undervalued range.
12.71
EV/EBIT
Transocean Ltd. (RIG) has a current EV/EBIT of 12.71. The 5-year average EV/EBIT is -18.61. The thresholds are as follows: Strongly Undervalued below -615.90, Undervalued between -615.90 and -317.26, Fairly Valued between 280.03 and -317.26, Overvalued between 280.03 and 578.68, and Strongly Overvalued above 578.68. The current Forward EV/EBIT of 12.71 falls within the Historic Trend Line -Fairly Valued range.
1.18
PS
Transocean Ltd. (RIG) has a current PS of 1.18. The 5-year average PS is 1.07. The thresholds are as follows: Strongly Undervalued below 0.39, Undervalued between 0.39 and 0.73, Fairly Valued between 1.41 and 0.73, Overvalued between 1.41 and 1.75, and Strongly Overvalued above 1.75. The current Forward PS of 1.18 falls within the Historic Trend Line -Fairly Valued range.
5.97
P/OCF
Transocean Ltd. (RIG) has a current P/OCF of 5.97. The 5-year average P/OCF is 8.90. The thresholds are as follows: Strongly Undervalued below -15.64, Undervalued between -15.64 and -3.37, Fairly Valued between 21.17 and -3.37, Overvalued between 21.17 and 33.44, and Strongly Overvalued above 33.44. The current Forward P/OCF of 5.97 falls within the Historic Trend Line -Fairly Valued range.
5.28
P/FCF
Transocean Ltd. (RIG) has a current P/FCF of 5.28. The 5-year average P/FCF is 4.98. The thresholds are as follows: Strongly Undervalued below -26.41, Undervalued between -26.41 and -10.71, Fairly Valued between 20.67 and -10.71, Overvalued between 20.67 and 36.36, and Strongly Overvalued above 36.36. The current Forward P/FCF of 5.28 falls within the Historic Trend Line -Fairly Valued range.
Transocean Ltd (RIG) has a current Price-to-Book (P/B) ratio of 0.58. Compared to its 3-year average P/B ratio of 0.41 , the current P/B ratio is approximately 39.37% higher. Relative to its 5-year average P/B ratio of 0.33, the current P/B ratio is about 72.91% higher. Transocean Ltd (RIG) has a Forward Free Cash Flow (FCF) yield of approximately 10.32%. Compared to its 3-year average FCF yield of -0.42%, the current FCF yield is approximately -2566.25% lower. Relative to its 5-year average FCF yield of 4.10% , the current FCF yield is about 151.64% lower.
0.58
P/B
Median3y
0.41
Median5y
0.33
10.32
FCF Yield
Median3y
-0.42
Median5y
4.10
Competitors Valuation Multiple
The average P/S ratio for RIG's competitors is 1.25, providing a benchmark for relative valuation. Transocean Ltd Corp (RIG) exhibits a P/S ratio of 1.18, which is -5.24% above the industry average. Given its robust revenue growth of 8.44%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RIG increased by 10.46% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -52.11 to -187.06.
The secondary factor is the Revenue Growth, contributed 8.44%to the performance.
Overall, the performance of RIG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Transocean Ltd (RIG) currently overvalued or undervalued?
Transocean Ltd (RIG) is now in the Fair zone, suggesting that its current forward PS ratio of 1.18 is considered Fairly compared with the five-year average of 24.71. The fair price of Transocean Ltd (RIG) is between 3.19 to 5.18 according to relative valuation methord.
What is Transocean Ltd (RIG) fair value?
RIG'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. The fair price of Transocean Ltd (RIG) is between 3.19 to 5.18 according to relative valuation methord.
How does RIG's valuation metrics compare to the industry average?
The average P/S ratio for RIG's competitors is 1.25, providing a benchmark for relative valuation. Transocean Ltd Corp (RIG) exhibits a P/S ratio of 1.18, which is -5.24% above the industry average. Given its robust revenue growth of 8.44%, this premium appears unsustainable.
What is the current P/B ratio for Transocean Ltd (RIG) as of Jan 07 2026?
As of Jan 07 2026, Transocean Ltd (RIG) has a P/B ratio of 0.58. This indicates that the market values RIG at 0.58 times its book value.
What is the current FCF Yield for Transocean Ltd (RIG) as of Jan 07 2026?
As of Jan 07 2026, Transocean Ltd (RIG) has a FCF Yield of 10.32%. This means that for every dollar of Transocean Ltd’s market capitalization, the company generates 10.32 cents in free cash flow.
What is the current Forward P/E ratio for Transocean Ltd (RIG) as of Jan 07 2026?
As of Jan 07 2026, Transocean Ltd (RIG) has a Forward P/E ratio of 20.62. This means the market is willing to pay $20.62 for every dollar of Transocean Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Transocean Ltd (RIG) as of Jan 07 2026?
As of Jan 07 2026, Transocean Ltd (RIG) has a Forward P/S ratio of 1.18. This means the market is valuing RIG at $1.18 for every dollar of expected revenue over the next 12 months.