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 0.00 is considered Fairly compared with the five-year average of 26.49. The fair price of Seadrill Ltd (SDRL) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：32.55
Fair
36.94
PE
1Y
3Y
5Y
Trailing
Forward
6.64
EV/EBITDA
Seadrill Ltd. (SDRL) has a current EV/EBITDA of 6.64. The 5-year average EV/EBITDA is 7.00. The thresholds are as follows: Strongly Undervalued below 4.22, Undervalued between 4.22 and 5.61, Fairly Valued between 8.39 and 5.61, Overvalued between 8.39 and 9.78, and Strongly Overvalued above 9.78. The current Forward EV/EBITDA of 6.64 falls within the Historic Trend Line -Fairly Valued range.
19.32
EV/EBIT
Seadrill Ltd. (SDRL) has a current EV/EBIT of 19.32. The 5-year average EV/EBIT is 12.87. The thresholds are as follows: Strongly Undervalued below 4.70, Undervalued between 4.70 and 8.79, Fairly Valued between 16.96 and 8.79, Overvalued between 16.96 and 21.04, and Strongly Overvalued above 21.04. The current Forward EV/EBIT of 19.32 falls within the Overvalued range.
1.53
PS
Seadrill Ltd. (SDRL) has a current PS of 1.53. The 5-year average PS is 1.81. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.31, Fairly Valued between 2.31 and 1.31, Overvalued between 2.31 and 2.80, and Strongly Overvalued above 2.80. The current Forward PS of 1.53 falls within the Historic Trend Line -Fairly Valued range.
14.71
P/OCF
Seadrill Ltd. (SDRL) has a current P/OCF of 14.71. The 5-year average P/OCF is 8.46. The thresholds are as follows: Strongly Undervalued below 0.51, Undervalued between 0.51 and 4.48, Fairly Valued between 12.43 and 4.48, Overvalued between 12.43 and 16.41, and Strongly Overvalued above 16.41. The current Forward P/OCF of 14.71 falls within the Overvalued range.
-113.56
P/FCF
Seadrill Ltd. (SDRL) has a current P/FCF of -113.56. The 5-year average P/FCF is 19.02. The thresholds are as follows: Strongly Undervalued below -175.55, Undervalued between -175.55 and -78.26, Fairly Valued between 116.31 and -78.26, Overvalued between 116.31 and 213.59, and Strongly Overvalued above 213.59. The current Forward P/FCF of -113.56 falls within the Undervalued range.
Seadrill Ltd (SDRL) has a current Price-to-Book (P/B) ratio of 0.71. Compared to its 3-year average P/B ratio of 0.95 , the current P/B ratio is approximately -25.65% higher. Relative to its 5-year average P/B ratio of 0.96, the current P/B ratio is about -25.91% higher. Seadrill Ltd (SDRL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.90% , the current FCF yield is about -100.00% lower.
0.71
P/B
Median3y
0.95
Median5y
0.96
-5.19
FCF Yield
Median3y
-0.80
Median5y
-1.90
Competitors Valuation Multiple
The average P/S ratio for SDRL's competitors is , providing a benchmark for relative valuation. Seadrill Ltd Corp (SDRL) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.39%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SDRL decreased by 16.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.15 to 59.36.
The secondary factor is the Revenue Growth, contributed 5.39%to the performance.
Overall, the performance of SDRL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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