Seadrill Valuation
| SDRL Stock | USD 41.61 1.30 3.23% |
At this time, the company appears to be undervalued. Seadrill Limited has a current Real Value of $183.0 per share. The regular price of the company is $41.61. Our model measures the value of Seadrill Limited from inspecting the company fundamentals such as Return On Equity of 0.14, operating margin of 0.15 %, and Shares Outstanding of 64.66 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Seadrill's valuation include:
Price Book 0.9236 | Enterprise Value 2.7 B | Enterprise Value Ebitda 4.2327 | Price Sales 1.8477 | Forward PE 11.4943 |
Undervalued
Today
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 41.61 | Real 183.0 | Target 608.4 | Hype 41.6 | Naive 38.6 |
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.
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: 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 |
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Seadrill Valuation Trend
Knowing Seadrill's actual value is paramount for traders when making sound investment determinations. Using both Seadrill's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Seadrill Revenue by Product
Seadrill Total Value Analysis
Seadrill Limited is at this time projected to have valuation of 2.73 B with market capitalization of 2.69 B, debt of 608 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 Price | Market Cap | Debt Obligations | Cash |
2.73 B | 2.69 B | 608 M | 336 M |
Seadrill Investor Information
About 85.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.92. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Seadrill Limited recorded earning per share (EPS) of 5.78. The entity last dividend was issued on the 18th of September 2014. The firm had 100:26777 split on the 3rd of July 2018. Based on the analysis of Seadrill's profitability, liquidity, and operating efficiency, Seadrill Limited is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.Seadrill Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Seadrill has an asset utilization ratio of 34.85 percent. This suggests that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that Seadrill Limited is more efficient with each dollar of assets it utilizes for everyday operations.Seadrill Ownership Allocation
Seadrill Limited shows a total of 64.66 Million outstanding shares. 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. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Seadrill Profitability Analysis
The company reported the previous year's revenue of 1.47 B. Net Income was 300 M with profit before overhead, payroll, taxes, and interest of 277 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 Reported | Projected for Next Year | ||
| Gross Profit | 565 M | 1 B | |
| Pretax Profit Margin | 0.22 | 0.23 | |
| Operating Profit Margin | 0.22 | 0.24 | |
| Net Profit Margin | 0.20 | 0.21 | |
| Gross Profit Margin | 0.38 | 0.45 |
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 Outstanding | 74 M | |
| Quarterly Earnings Growth Y O Y | -0.553 | |
| Forward Price Earnings | 11.4943 |
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 metropolitan statistical area. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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. All the valuation information about Seadrill listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.55) | Earnings Share 5.78 | Revenue Per Share 20.648 | Quarterly Revenue Growth (0.15) | Return On Assets 0.0404 |
The market value of Seadrill Limited is measured differently than its book value, which is the value of Seadrill that is recorded on the company's balance sheet. Investors also form their own opinion of Seadrill's value that differs from its market value or its book value, called intrinsic value, which is Seadrill's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Seadrill's market value can be influenced by many factors that don't directly affect Seadrill's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic 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. However, Seadrill's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.