Transocean Will Ride the M&A Wave as Shelf Drilling Spurs Consolidation

JA
Community Contributor
Published
06 Aug 25
Updated
06 Aug 25
JahreViking76's Fair Value
US$2.16
43.5% overvalued intrinsic discount
06 Aug
US$3.10
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1Y
-40.2%
7D
9.9%

Author's Valuation

US$2.2

43.5% overvalued intrinsic discount

JahreViking76's Fair Value

M&A is back in the rig space. Shelf Drilling being bought out has set fire to the sector. Can only imply consolidation and bottoming. Heavily indebted sector with rocket fuel in its back pocket. Falling interest rates and the green narrative (or bubble) collapsing back to earth on realities. I.e. the world still runs on 86% fossil-fuels and it needs more of it.

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Disclaimer

The user JahreViking76 has a position in NYSE:RIG. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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US$2.16
FV
43.5% overvalued intrinsic discount
7.00%
Revenue growth p.a.
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17 days ago author updated this narrative