Valaris Valuation
| VAL Stock | USD 71.11 2.17 2.96% |
At this time, the company appears to be undervalued. Valaris has a current Real Value of $85.0 per share. The regular price of the company is $71.11. Our model measures the value of Valaris from inspecting the company fundamentals such as Return On Equity of 0.5, shares outstanding of 72.41 M, and Operating Margin of 0.05 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Valaris' valuation include:
Price Book 2.5804 | Enterprise Value 6 B | Enterprise Value Ebitda 22.2806 | Price Sales 2.8746 | Forward PE 15.0602 |
Undervalued
Today
Please note that Valaris' price fluctuation is very steady at this time. Calculation of the real value of Valaris is based on 3 months time horizon. Increasing Valaris' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Valaris stock is determined by what a typical buyer is willing to pay for full or partial control of Valaris. Since Valaris is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Valaris Stock. However, Valaris' 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 71.11 | Real 85.0 | Target 97.56 | Hype 71.43 | Naive 68.06 |
The intrinsic value of Valaris' 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 Valaris' stock price.
Estimating the potential upside or downside of Valaris helps investors to forecast how Valaris 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 Valaris more accurately as focusing exclusively on Valaris' 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 Valaris' intrinsic value based on its ongoing forecasts of Valaris' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Valaris' closest peers.
Valaris Investments |
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Valaris Valuation Trend
Knowing Valaris' actual value is paramount for traders to make sound investment determinations. Valaris' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Valaris' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Valaris' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Valaris Market Cap
Valaris is rated first in market capitalization category among its peers. Market capitalization of Energy industry is at this time estimated at about 15.87 Billion. Valaris totals roughly 5.2 Billion in market capitalization claiming about 33% of equities under Energy industry.Valaris Total Value Analysis
Valaris is at this time forecasted to have company total value of 5.98 B with market capitalization of 5.2 B, debt of 1.16 B, and cash on hands of 724.1 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Valaris fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
| 5.98 B | 5.2 B | 1.16 B | 724.1 M |
Valaris Investor Information
About 91.0% of the company outstanding shares are owned by institutional investors. The book value of Valaris was at this time reported as 27.91. The company recorded earning per share (EPS) of 11.25. Valaris had 2:1 split on the 11th of April 2019. Valaris Limited provides offshore contract drilling services to the international oil and gas industry. The company was incorporated in 2009 and is based in Hamilton, Bermuda. Valaris is traded on New York Stock Exchange in the United States. For more information please call Thomas Burke at 44 20 7659 4660 or visit https://www.valaris.com.Valaris Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Valaris has an asset utilization ratio of 41.28 percent. This suggests that the Company is making $0.41 for each dollar of assets. An increasing asset utilization means that Valaris is more efficient with each dollar of assets it utilizes for everyday operations.Valaris Ownership Allocation
Valaris shows a total of 72.41 Million outstanding shares. The majority of Valaris outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Valaris to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Valaris. Please pay attention to any change in the institutional holdings of Valaris 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.Valaris Profitability Analysis
The company reported the last year's revenue of 1.78 B. Total Income to common stockholders was 866.8 M with profit before taxes, overhead, and interest of 219.3 M. Profitability |
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About Valaris Valuation
The stock valuation mechanism determines the current worth of Valaris on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Valaris. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Valaris based exclusively on its fundamental and basic technical indicators. By analyzing Valaris's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Valaris's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Valaris. We calculate exposure to Valaris's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Valaris's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 139.5 M | 132.5 M | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.03 | 0.03 | |
| Net Profit Margin | 0.49 | 0.51 | |
| Gross Profit Margin | 0.08 | 0.07 |
8 Steps to conduct Valaris' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Valaris' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Valaris' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Valaris' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Valaris' revenue streams: Identify Valaris' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Valaris' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Valaris' growth potential: Evaluate Valaris' management, business model, and growth potential.
- Determine Valaris' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Valaris' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Valaris Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Valaris 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 | 75.2 M | |
| Quarterly Earnings Growth Y O Y | -0.426 | |
| Forward Price Earnings | 15.0602 |
Valaris Current Valuation Indicators
Valuation refers to the process of determining the present value of Valaris and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Valaris we look at many different elements of the entity such as Valaris's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Valaris' valuation analysis is also 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 Valaris' 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 Valaris, 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 Valaris' 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 Valaris' worth.Additional Information and Resources on Investing in Valaris Stock
When determining whether Valaris is a strong investment it is important to analyze Valaris' 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 Valaris' future performance. For an informed investment choice regarding Valaris 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 Valaris. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Valaris Stock please use our How to buy in Valaris Stock guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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 Valaris. If investors know Valaris 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 Valaris 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 (0.43) | Earnings Share 11.25 | Revenue Per Share 25.601 | Quarterly Revenue Growth 0.221 | Return On Assets 0.0109 |
The market value of Valaris is measured differently than its book value, which is the value of Valaris that is recorded on the company's balance sheet. Investors also form their own opinion of Valaris' value that differs from its market value or its book value, called intrinsic value, which is Valaris' 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 Valaris' market value can be influenced by many factors that don't directly affect Valaris' 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 Valaris' value and its price as these two are different measures arrived at by different means. Investors typically determine if Valaris is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valaris' 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.