Borr Drilling Limited

BATS-CHIXE:BORRO Stock Report

Market Cap: NOK 10.9b

Borr Drilling Valuation

Is BORRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BORRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BORRO (NOK44.54) is trading below our estimate of fair value (NOK90.14)

Significantly Below Fair Value: BORRO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BORRO?

Key metric: As BORRO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BORRO. This is calculated by dividing BORRO's market cap by their current earnings.
What is BORRO's PE Ratio?
PE Ratio11.6x
EarningsUS$84.20m
Market CapUS$979.14m

Price to Earnings Ratio vs Peers

How does BORRO's PE Ratio compare to its peers?

The above table shows the PE ratio for BORRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.4x
HTG Hunting
4.5x-7.9%UK£473.7m
YCA Yellow Cake
2.1x-112.5%UK£1.2b
ENOG Energean
9.2x7.0%UK£2.0b
SQZ Serica Energy
6x-15.0%UK£541.9m
BORRO Borr Drilling
11.6x49.4%NOK 10.9b

Price-To-Earnings vs Peers: BORRO is expensive based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (5.4x).

Price to Earnings Ratio vs Industry

How does BORRO's PE Ratio compare vs other companies in the European Energy Services Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies7PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BORRO is expensive based on its Price-To-Earnings Ratio (11.6x) compared to the European Energy Services industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is BORRO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BORRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio26.5x

Price-To-Earnings vs Fair Ratio: BORRO is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BORRO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
NOK 64.31
0%
3.9%NOK 66.36NOK 60.00n/a4
Nov ’25NOK 44.98
NOK 73.93
+64.4%
16.6%NOK 95.07NOK 65.76n/a4
Oct ’25NOK 57.80
NOK 83.79
+45.0%
15.6%NOK 96.81NOK 64.91n/a4
Sep ’25NOK 62.90
NOK 85.92
+36.6%
12.6%NOK 97.75NOK 71.82n/a4
Aug ’25NOK 73.10
NOK 85.46
+16.9%
14.7%NOK 98.03NOK 65.96n/a4
Jul ’25NOK 69.80
NOK 84.69
+21.3%
16.3%NOK 98.98NOK 64.00n/a4
Jun ’25NOK 75.90
NOK 82.22
+8.3%
19.3%NOK 97.30NOK 57.54n/a4
May ’25NOK 60.35
NOK 80.96
+34.2%
16.9%NOK 94.93NOK 60.26n/a4
Apr ’25NOK 70.00
NOK 105.32
+50.5%
3.0%NOK 109.97NOK 101.74n/a4
Mar ’25NOK 65.05
NOK 104.15
+60.1%
3.4%NOK 109.90NOK 100.56n/a4
Feb ’25NOK 64.00
NOK 104.02
+62.5%
3.4%NOK 110.13NOK 101.46n/a4
Jan ’25NOK 76.10
NOK 102.48
+34.7%
4.2%NOK 109.99NOK 99.46n/a4
Dec ’24NOK 68.50
NOK 104.42
+52.4%
4.6%NOK 110.02NOK 97.05n/a4
Nov ’24NOK 67.40
NOK 106.26
+57.7%
4.1%NOK 110.57NOK 101.95NOK 44.982
Oct ’24NOK 76.00
NOK 111.38
+46.5%
4.3%NOK 117.64NOK 106.16NOK 57.803
Sep ’24NOK 77.45
NOK 105.45
+36.1%
2.8%NOK 109.48NOK 102.30NOK 62.903
Aug ’24NOK 83.30
NOK 106.53
+27.9%
3.0%NOK 109.90NOK 102.14NOK 73.103
Jul ’24NOK 78.45
NOK 106.53
+35.8%
3.0%NOK 109.90NOK 102.14NOK 69.803
Jun ’24NOK 81.10
NOK 106.53
+31.4%
3.0%NOK 109.90NOK 102.14NOK 75.903
May ’24n/a
NOK 93.04
0%
1.0%NOK 93.98NOK 92.10NOK 60.352
Apr ’24n/a
NOK 89.45
0%
0.7%NOK 90.11NOK 88.79NOK 70.002
Mar ’24NOK 72.00
NOK 89.46
+24.3%
1.2%NOK 90.49NOK 88.43NOK 65.052
Jan ’24n/a
NOK 59.36
0%
9.5%NOK 64.99NOK 53.73NOK 76.102
Dec ’23NOK 46.87
NOK 52.18
+11.3%
7.0%NOK 55.85NOK 48.50NOK 68.502
Nov ’23NOK 45.13
NOK 37.94
-15.9%
30.8%NOK 49.62NOK 26.26NOK 67.402

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Schoeller-Bleckmann Oilfield Equipment

€456.2m

Manufactures and sells steel products worldwide.

0O05

€28.90

7D

-8.2%

1Y

-30.9%

TotalEnergies

€127.4b

A multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally.

TTE

€56.15

7D

-3.9%

1Y

-12.5%

DorianG

US$1.1b

Engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide.

0A8W

US$25.37

7D

-3.5%

1Y

-42.2%