VAL Valuation

Valaris Ltd

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49.170

+2.99(6.475%)1D

Overview
Forecast
Valuation
Earnings

VAL Relative Valuation

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

Historical Valuation

Valaris Ltd (VAL) is now in the Fair zone, suggesting that its current forward PS ratio of 1.63 is considered Fairly compared with the five-year average of 21.08. The fair price of Valaris Ltd (VAL) is between 44.05 to 68.30 according to relative valuation methord.

Relative Value

Fair Zone

44.05-68.30

Current Price：49.17

Fair

24.25

Trailing

Forward

11.08

EV/EBITDA

Valaris Ltd. (VAL) has a current EV/EBITDA of 11.08. The 5-year average EV/EBITDA is 15.13. The thresholds are as follows: Strongly Undervalued below -1.45, Undervalued between -1.45 and 6.84, Fairly Valued between 23.42 and 6.84, Overvalued between 23.42 and 31.71, and Strongly Overvalued above 31.71. The current Forward EV/EBITDA of 11.08 falls within the Historic Trend Line -Fairly Valued range.

19.25

EV/EBIT

Valaris Ltd. (VAL) has a current EV/EBIT of 19.25. The 5-year average EV/EBIT is 22.20. The thresholds are as follows: Strongly Undervalued below -42.67, Undervalued between -42.67 and -10.23, Fairly Valued between 54.64 and -10.23, Overvalued between 54.64 and 87.08, and Strongly Overvalued above 87.08. The current Forward EV/EBIT of 19.25 falls within the Historic Trend Line -Fairly Valued range.

1.63

Valaris Ltd. (VAL) has a current PS of 1.63. The 5-year average PS is 2.04. The thresholds are as follows: Strongly Undervalued below 1.04, Undervalued between 1.04 and 1.54, Fairly Valued between 2.55 and 1.54, Overvalued between 2.55 and 3.05, and Strongly Overvalued above 3.05. The current Forward PS of 1.63 falls within the Historic Trend Line -Fairly Valued range.

8.66

P/OCF

Valaris Ltd. (VAL) has a current P/OCF of 8.66. The 5-year average P/OCF is 43.19. The thresholds are as follows: Strongly Undervalued below -82.50, Undervalued between -82.50 and -19.66, Fairly Valued between 106.04 and -19.66, Overvalued between 106.04 and 168.88, and Strongly Overvalued above 168.88. The current Forward P/OCF of 8.66 falls within the Historic Trend Line -Fairly Valued range.

-263.09

P/FCF

Valaris Ltd. (VAL) has a current P/FCF of -263.09. The 5-year average P/FCF is -0.46. The thresholds are as follows: Strongly Undervalued below -125.01, Undervalued between -125.01 and -62.74, Fairly Valued between 61.82 and -62.74, Overvalued between 61.82 and 124.10, and Strongly Overvalued above 124.10. The current Forward P/FCF of -263.09 falls within the Strongly Undervalued range.

Valaris Ltd (VAL) has a current Price-to-Book (P/B) ratio of 1.50. Compared to its 3-year average P/B ratio of 2.81 , the current P/B ratio is approximately -46.63% higher. Relative to its 5-year average P/B ratio of 2.78, the current P/B ratio is about -45.93% higher. Valaris Ltd (VAL) has a Forward Free Cash Flow (FCF) yield of approximately 7.07%. Compared to its 3-year average FCF yield of -4.89%, the current FCF yield is approximately -244.46% lower. Relative to its 5-year average FCF yield of -4.20% , the current FCF yield is about -268.14% lower.

1.50

P/B

Median3y

2.81

Median5y

2.78

7.07

FCF Yield

Median3y

-4.89

Median5y

-4.20

Competitors Valuation Multiple

The average P/S ratio for VAL's competitors is 1.00, providing a benchmark for relative valuation. Valaris Ltd Corp (VAL) exhibits a P/S ratio of 1.63, which is 63.51% above the industry average. Given its robust revenue growth of 0.84%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Noble Corporation PLC

Patterson-UTI Energy Inc

Helmerich and Payne Inc

0.46

49.19%

1.88B

Performance Decomposition

Market capitalization of VAL decreased by 19.47% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.26 to 12.83.

The secondary factor is the Revenue Growth, contributed 0.84%to the performance.

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

0.84%

610.10M → 615.20M

Revenue Growth

-24.92%

24.72 → 18.56

Margin Expansion

4.61%

12.26 → 12.83

P/E Change

-19.47%