Valaris VAL
United StatesEnergy · Oil & Gas DrillingUSD
68.29 USD (−16.6%)
7 analysts
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Valaris Limited is one of the world's largest offshore drilling contractors, providing floating and jack-up drilling rigs and related services to oil and gas companies worldwide.
Key points
from its scores- ✓Good share-price trend9.7
- ✕Weak growth0.2
- ✕Little or no dividend1.4
- ✕Little competitive advantage4.2
AI analysis
bottom line, main risk, context and newsStrong momentum and attractive valuation (P/E 6.17) are offset by declining results and geopolitical uncertainty in its operating regions.
Valaris shows a healthy balance sheet (ND/EBITDA of 1.47) and exceptional stock momentum (79.10%), but suffers a sharp contraction in revenue and earnings (-12.4% and -55.3% respectively), reflecting the weakness of the offshore drilling cycle and justifying a very low growth score (0.67).
The main risk is the operational and security exposure to the Strait of Hormuz and other conflict-affected shipping lanes, which could disrupt its operations and affect demand for its rigs.
Context and risks
Valaris operates in Middle Eastern waters, including the Persian Gulf, an area directly affected by the blockade of the Strait of Hormuz. Although demand for drilling rigs may be boosted by the need to replace crude, the company faces a tangible operational and security risk in one of its key regions, as well as potential volatility in contracts and logistics.
Is Valaris stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Energy median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 6.2 | 15.7 | −61% |
| EV / EBITDA | 14.8 | 8.0 | +85% |
| Price / book | 1.8 | 2.2 | −20% |
| Price / sales | 2.7 | 1.9 | +39% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.4 out of 10 (median for Energy: 5.9).
Average analyst target: 68.29 USD, −16.6% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 6.2
- Forward P/E
- 11.6
- EV / EBITDA
- 14.8
- Price / book
- 1.8
- Price / sales
- 2.7
- Market cap
- 5.7B USD
- Enterprise value
- 6.3B USD
Profitability
- ROE
- 33.6%
- ROA
- 3.3%
- ROIC (approx.)
- 4.8%
- Gross margin
- 24.8%
- Operating margin
- 9.8%
- Net margin
- 44.0%
- Free cash flow
- 79.7M USD
- FCF yield
- 1.4%
- Cash conversion
- 19%
Solvency
- Total debt
- 1.2B USD
- Net debt
- 624.3M USD
- Cash
- 541.2M USD
- EBITDA
- 424.8M USD
- Net debt / EBITDA
- 1.47
- Debt / equity
- 36.22
- Current ratio
- 1.55
- Quick ratio
- 1.29
Growth
- Revenue growth
- −12.4%
- Earnings growth
- −55.3%
- EPS (TTM)
- 13.26 USD
- EPS (forward)
- 7.06 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.05
- Analyst consensus
- Hold (7)
- Target price
- 68.29 USD
- 52-week range
- 46.70 – 114.12
Recent news
All VAL news →Compare it with its sector
All 102 in Energy →Frequently asked questions about Valaris
Is Valaris stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Energy median (within 15%). Valuation score: 5.4 out of 10 (median for Energy: 5.9). Average analyst target: 68.29 USD, −16.6% versus the price. This is not investment advice.
What score does Valaris get on MeridIAn Screener?
It scores 5.0 out of 10, rank 1,718 of 2,130 (better than 19% of the companies analysed). Its strongest category is Momentum (9.7) and its weakest, Growth (0.2). Analysis of 08/10/2026.
What is Valaris's P/E ratio?
Its P/E is 6.2: the share price equals 6.2 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 11.6.
How much is Valaris worth on the stock market?
Its market capitalisation is 5.7B USD and its enterprise value, debt included, is 6.3B USD.
How much debt does Valaris have?
Its net debt (debt minus cash) is 624.3M USD. That is 1.47 times its EBITDA; the Energy median is 1.23.
Does Valaris pay a dividend?
It pays no dividend, or almost none.
How has Valaris stock performed over the last year?
It has risen 75.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 46.70 and 114.12 USD. Past performance does not guarantee future results.
What do analysts think of Valaris?
7 analysts cover it; their average recommendation is “Hold” and their average target is 68.29 USD (−16.6% versus the price). It is an estimate, not market data.