Archer Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ARCH (NOK22.99) is trading below our estimate of fair value (NOK150.43)

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


Key Valuation Metric

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

Key metric: As ARCH is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ARCH. This is calculated by dividing ARCH's market cap by their current revenue.
What is ARCH's PS Ratio?
PS Ratio0.2x
SalesUS$1.06b
Market CapUS$183.69m

Price to Sales Ratio vs Peers

How does ARCH's PS Ratio compare to its peers?

The above table shows the PS ratio for ARCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
SHLF Shelf Drilling
0.2x0.4%NOK 2.3b
OTL Odfjell Technology
0.3x3.0%NOK 1.7b
SDNS Shelf Drilling (North Sea)
1.7x34.5%NOK 2.9b
DDRIL Dolphin Drilling
0.9x30.8%NOK 846.5m
ARCH Archer
0.2x10.0%NOK 2.1b

Price-To-Sales vs Peers: ARCH is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).


Price to Sales Ratio vs Industry

How does ARCH's PS Ratio compare vs other companies in the NO Energy Services Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
PRS Prosafe
0.08x24.4%US$10.93m
HAVI Havila Shipping
0.09xn/aUS$4.53m
No more companies available in this PS range
ARCH 0.2xIndustry Avg. 0.9xNo. of Companies6PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ARCH is good value based on its Price-To-Sales Ratio (0.2x) compared to the Norwegian Energy Services industry average (0.9x).


Price to Sales Ratio vs Fair Ratio

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

ARCH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: ARCH is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


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 ARCH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNOK 22.99
NOK 42.00
+82.7%
8.5%NOK 45.00NOK 37.00n/a3
Dec ’25NOK 23.15
NOK 43.33
+87.2%
10.7%NOK 48.00NOK 37.00n/a3
Nov ’25NOK 23.80
NOK 47.67
+100.3%
4.3%NOK 50.00NOK 45.00n/a3
Oct ’25NOK 23.31
NOK 47.67
+104.5%
4.3%NOK 50.00NOK 45.00n/a3
Sep ’25NOK 24.06
NOK 47.67
+98.1%
4.3%NOK 50.00NOK 45.00n/a3
Aug ’25NOK 27.31
NOK 47.67
+74.5%
4.3%NOK 50.00NOK 45.00n/a3
Jul ’25NOK 28.00
NOK 47.67
+70.2%
4.3%NOK 50.00NOK 45.00n/a3
Jun ’25NOK 31.15
NOK 46.50
+49.3%
3.2%NOK 48.00NOK 45.00n/a2
May ’25NOK 26.15
NOK 41.88
+60.1%
4.5%NOK 43.75NOK 40.00n/a2
Apr ’25NOK 28.25
NOK 41.88
+48.2%
4.5%NOK 43.75NOK 40.00n/a2
Mar ’25NOK 22.80
NOK 41.88
+83.7%
4.5%NOK 43.75NOK 40.00n/a2
Feb ’25NOK 24.85
NOK 41.88
+68.5%
4.5%NOK 43.75NOK 40.00n/a2
Jan ’25NOK 21.95
NOK 38.75
+76.5%
3.2%NOK 40.00NOK 37.50n/a2
Dec ’24NOK 21.25
NOK 38.75
+82.4%
3.2%NOK 40.00NOK 37.50NOK 23.152
Nov ’24NOK 22.65
NOK 38.75
+71.1%
3.2%NOK 40.00NOK 37.50NOK 23.802
Oct ’24NOK 23.05
NOK 38.75
+68.1%
3.2%NOK 40.00NOK 37.50NOK 23.312
Sep ’24NOK 24.50
NOK 38.75
+58.2%
3.2%NOK 40.00NOK 37.50NOK 24.062

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


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 05:39
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Archer Limited is covered by 15 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kjetil GarstadArctic Securities ASA
Håkon JohansenBeringer Finance AB
Chr. Frederik LundeCarnegie Investment Bank AB