Update shared on 14 Dec 2025
Fair value Decreased 4.01%Analysts have modestly lowered their price target on Seadrill to reflect a slightly higher profit outlook, offset by a reduced fair value estimate of approximately 4 percent and a marginally softer long term growth profile.
What's in the News
- Seadrill has completed its previously announced share buyback program, repurchasing a total of 6,714,252 shares, equivalent to 9.86% of shares outstanding, for $292 million under the May 16, 2024 authorization (company filing).
- During the most recent tranche from July 1, 2025 to September 30, 2025, the company did not repurchase additional shares, leaving the aggregate repurchase figures unchanged for the period (company filing).
- The company revised and narrowed its full year 2025 earnings guidance, raising the total operating revenue range to $1,360 million to $1,390 million, compared with the prior range of $1,320 million to $1,380 million, excluding $50 million of reimbursable revenue (company guidance).
Valuation Changes
- Fair Value Estimate decreased modestly from 76.82 to 73.74, implying roughly a 4 percent reduction in the intrinsic value per share.
- Discount Rate edged lower from 8.13 percent to 7.57 percent, reflecting a slightly lower assumed cost of capital in the updated model.
- Revenue Growth was trimmed slightly from 11.43 percent to 11.15 percent per year, signaling a marginally softer long term top line outlook.
- Net Profit Margin increased meaningfully from 24.46 percent to 30.57 percent, indicating expectations for stronger underlying profitability.
- Future P/E declined modestly from 11.13x to 10.54x, suggesting a slightly lower valuation multiple applied to forward earnings.
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