SDRL Valuation

Seadrill Ltd

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29.210

+0.2(0.689%)1D

Overview
Forecast
Valuation
Earnings

SDRL Relative Valuation

SDRL'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, SDRL is overvalued; if below, it's undervalued.

Historical Valuation

Seadrill Ltd (SDRL) is now in the Fair zone, suggesting that its current forward PS ratio of 1.44 is considered Fairly compared with the five-year average of 22.55. The fair price of Seadrill Ltd (SDRL) is between 24.92 to 41.40 according to relative valuation methord.

Relative Value

Fair Zone

24.92-41.40

Current Price：29.21

Fair

155.55

Trailing

Forward

6.83

EV/EBITDA

Seadrill Ltd. (SDRL) has a current EV/EBITDA of 6.83. The 5-year average EV/EBITDA is 7.04. The thresholds are as follows: Strongly Undervalued below 4.14, Undervalued between 4.14 and 5.59, Fairly Valued between 8.49 and 5.59, Overvalued between 8.49 and 9.94, and Strongly Overvalued above 9.94. The current Forward EV/EBITDA of 6.83 falls within the Historic Trend Line -Fairly Valued range.

24.63

EV/EBIT

Seadrill Ltd. (SDRL) has a current EV/EBIT of 24.63. The 5-year average EV/EBIT is 11.91. The thresholds are as follows: Strongly Undervalued below 6.28, Undervalued between 6.28 and 9.10, Fairly Valued between 14.73 and 9.10, Overvalued between 14.73 and 17.54, and Strongly Overvalued above 17.54. The current Forward EV/EBIT of 24.63 falls within the Strongly Overvalued range.

1.44

Seadrill Ltd. (SDRL) has a current PS of 1.44. The 5-year average PS is 1.84. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 1.34, Fairly Valued between 2.35 and 1.34, Overvalued between 2.35 and 2.86, and Strongly Overvalued above 2.86. The current Forward PS of 1.44 falls within the Historic Trend Line -Fairly Valued range.

13.08

P/OCF

Seadrill Ltd. (SDRL) has a current P/OCF of 13.08. The 5-year average P/OCF is 7.95. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 4.07, Fairly Valued between 11.84 and 4.07, Overvalued between 11.84 and 15.72, and Strongly Overvalued above 15.72. The current Forward P/OCF of 13.08 falls within the Overvalued range.

-120.34

P/FCF

Seadrill Ltd. (SDRL) has a current P/FCF of -120.34. The 5-year average P/FCF is 34.12. The thresholds are as follows: Strongly Undervalued below -145.79, Undervalued between -145.79 and -55.84, Fairly Valued between 124.07 and -55.84, Overvalued between 124.07 and 214.03, and Strongly Overvalued above 214.03. The current Forward P/FCF of -120.34 falls within the Undervalued range.

Seadrill Ltd (SDRL) has a current Price-to-Book (P/B) ratio of 0.63. Compared to its 3-year average P/B ratio of 0.99 , the current P/B ratio is approximately -36.27% higher. Relative to its 5-year average P/B ratio of 0.99, the current P/B ratio is about -36.25% higher. Seadrill Ltd (SDRL) has a Forward Free Cash Flow (FCF) yield of approximately -10.80%. Compared to its 3-year average FCF yield of -1.21%, the current FCF yield is approximately 793.18% lower. Relative to its 5-year average FCF yield of -1.29% , the current FCF yield is about 737.07% lower.

0.63

P/B

Median3y

0.99

Median5y

0.99

-10.80

FCF Yield

Median3y

-1.21

Median5y

-1.29

Competitors Valuation Multiple

The average P/S ratio for SDRL's competitors is 0.71, providing a benchmark for relative valuation. Seadrill Ltd Corp (SDRL) exhibits a P/S ratio of 1.44, which is 103.54% above the industry average. Given its robust revenue growth of 0.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Helmerich and Payne Inc

Patterson-UTI Energy Inc

Precision Drilling Corp

Performance Decomposition

Market capitalization of SDRL decreased by 32.26% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.00 to 23.92.

The secondary factor is the Revenue Growth, contributed 0.28%to the performance.

Overall, the performance of SDRL in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.28%

360.00M → 361.00M

Revenue Growth

-116.55%

70.28 → -11.63

Margin Expansion

84.01%

13.00 → 23.92

P/E Change

-32.26%