Seadrill Valuation

SDRL Stock  USD 43.80  1.30  3.06%   
At this time, the company appears to be undervalued. Seadrill Limited has a current Real Value of $46.55 per share. The regular price of the company is $43.8. Our model measures the value of Seadrill Limited from inspecting the company fundamentals such as Shares Outstanding of 62.37 M, operating margin of 0.08 %, and Return On Equity of 0.0118 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Seadrill's valuation include:
Price Book
0.9288
Enterprise Value
2.9 B
Enterprise Value Ebitda
12.556
Price Sales
2.0282
Forward PE
31.25
Undervalued
Today
43.80
Please note that Seadrill's price fluctuation is very steady at this time. Calculation of the real value of Seadrill Limited is based on 3 months time horizon. Increasing Seadrill's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Seadrill stock is determined by what a typical buyer is willing to pay for full or partial control of Seadrill Limited. Since Seadrill is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Seadrill Stock. However, Seadrill's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  43.8 Real  46.55 Target  45.5 Hype  43.92 Naive  44.84
The intrinsic value of Seadrill's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Seadrill's stock price.
46.55
Real Value
49.40
Upside
Estimating the potential upside or downside of Seadrill Limited helps investors to forecast how Seadrill stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Seadrill more accurately as focusing exclusively on Seadrill's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.260.350.44
Details
Hype
Prediction
LowEstimatedHigh
41.0743.9246.77
Details
Naive
Forecast
LowNext ValueHigh
41.9944.8447.70
Details
7 Analysts
Consensus
LowTarget PriceHigh
41.4145.5050.51
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Seadrill's intrinsic value based on its ongoing forecasts of Seadrill's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Seadrill's closest peers.

Seadrill Cash

654.03 Million

Seadrill Total Value Analysis

Seadrill Limited is at this time projected to have valuation of 2.89 B with market capitalization of 2.65 B, debt of 618 M, and cash on hands of 336 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Seadrill fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
2.89 B
2.65 B
618 M
336 M

Seadrill Investor Information

About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.93. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Seadrill Limited last dividend was issued on the 18th of September 2014. The entity had 100:26777 split on the 3rd of July 2018. Seadrill Limited may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.

Seadrill Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Seadrill suggests not a very effective usage of assets in February.
 
Yuan Drop
 
Covid
 
Interest Hikes

Seadrill Profitability Analysis

Taking into consideration Seadrill's profitability measurements, Seadrill Limited is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess Seadrill's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2012-09-30
Previous Quarter
-42 M
Current Value
-11 M
Quarterly Volatility
1.2 B
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Seadrill's Pretax Profit Margin is quite stable compared to the past year. Operating Profit Margin is expected to rise to 0.36 this year, although the value of Gross Profit will most likely fall to about 250.5 M.
For Seadrill profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Seadrill Limited to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Seadrill utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Seadrill's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Seadrill over time as well as its relative position and ranking within its peers.

Seadrill Earnings per Share Projection vs Actual

The next projected EPS of Seadrill is estimated to be 0.346025 with future projections ranging from a low of 0.255 to a high of 0.43705. Seadrill's most recent 12-month trailing earnings per share (EPS TTM) is at 0.47. Please be aware that the consensus of earnings estimates for Seadrill Limited is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Seadrill is projected to generate 0.346025 in earnings per share on the 31st of December 2026. Seadrill earnings estimates show analyst consensus about projected Seadrill EPS (Earning Per Share). It derives the highest and the lowest estimates based on Seadrill's historical volatility. Many public companies, such as Seadrill, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Seadrill Earnings Estimation Breakdown

The calculation of Seadrill's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Seadrill is estimated to be 0.346025 with the future projection ranging from a low of 0.255 to a high of 0.43705. Please be aware that this consensus of annual earnings estimates for Seadrill Limited is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.26
Lowest
Expected EPS
0.346025
0.44
Highest

Seadrill Earnings Projection Consensus

Suppose the current estimates of Seadrill's value are higher than the current market price of the Seadrill stock. In this case, investors may conclude that Seadrill is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Seadrill's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
745.08%
0.0
0.346025
0.47

Seadrill Ownership Allocation

The majority of Seadrill Limited outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Seadrill to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Seadrill Limited. Please pay attention to any change in the institutional holdings of Seadrill Limited as this could imply that something significant has changed or is about to change at the company.

Seadrill Profitability Analysis

The company reported the previous year's revenue of 1.39 B. Net Income was 446 M with profit before overhead, payroll, taxes, and interest of 355 M.

About Seadrill Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Seadrill Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Seadrill Limited based exclusively on its fundamental and basic technical indicators. By analyzing Seadrill's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Seadrill's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Seadrill. We calculate exposure to Seadrill's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Seadrill's related companies.
Last ReportedProjected for Next Year
Gross Profit263.7 M250.5 M
Pretax Profit Margin 0.28  0.29 
Operating Profit Margin 0.34  0.36 
Net Profit Margin 0.29  0.30 
Gross Profit Margin 0.24  0.36 

Seadrill Growth Indicators

Investing in growth stocks can be very risky. If the company such as Seadrill does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding71 M
Quarterly Earnings Growth Y O Y0.631
Forward Price Earnings31.25

Seadrill Current Valuation Indicators

Seadrill's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Seadrill's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Seadrill, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Seadrill's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Seadrill's worth.
When determining whether Seadrill Limited is a strong investment it is important to analyze Seadrill's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Seadrill's future performance. For an informed investment choice regarding Seadrill Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Seadrill Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real.
You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Is Energy Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Seadrill. If investors know Seadrill will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Seadrill assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth
0.631
Earnings Share
0.47
Revenue Per Share
21.081
Quarterly Revenue Growth
0.054
Return On Assets
0.0052
Understanding Seadrill Limited requires distinguishing between market price and book value, where the latter reflects Seadrill's accounting equity. The concept of intrinsic value - what Seadrill's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Seadrill's price substantially above or below its fundamental value.
Please note, there is a significant difference between Seadrill's value and its price as these two are different measures arrived at by different means. Investors typically determine if Seadrill is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. In contrast, Seadrill's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.