NorAm Drilling AS

OB:NORAM Stock Report

Market Cap: NOK 1.6b

NorAm Drilling Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 NORAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NORAM (NOK37.15) is trading below our estimate of fair value (NOK103.41)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NORAM. This is calculated by dividing NORAM's market cap by their current revenue.
What is NORAM's PS Ratio?
PS Ratio1.4x
SalesUS$100.53m
Market CapUS$144.77m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NORAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
ABL ABL Group
0.4x14.4%NOK 1.2b
EIOF Eidesvik Offshore
1.3xn/aNOK 1.0b
BBERG Beerenberg
0.4x6.8%NOK 1.0b
REACH Reach Subsea
0.9x8.4%NOK 2.3b
NORAM NorAm Drilling
1.4x4.1%NOK 1.6b

Price-To-Sales vs Peers: NORAM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

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

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
HAVI Havila Shipping
0.1xn/aUS$5.57m
DWELLOP Dwellop
0.09xn/aUS$1.28m
No more companies available in this PS range
NORAM 1.4xIndustry Avg. 1.1xNo. of Companies5PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NORAM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Norwegian Energy Services industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is NORAM'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.

NORAM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: NORAM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 NORAM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNOK 37.15
NOK 52.00
+40.0%
9.8%NOK 59.00NOK 47.00n/a3
Nov ’25NOK 36.55
NOK 52.00
+42.3%
9.8%NOK 59.00NOK 47.00n/a3
Oct ’25NOK 39.10
NOK 52.00
+33.0%
9.8%NOK 59.00NOK 47.00n/a3
Sep ’25NOK 36.95
NOK 52.00
+40.7%
9.8%NOK 59.00NOK 47.00n/a3
Aug ’25NOK 39.70
NOK 56.00
+41.1%
7.6%NOK 59.00NOK 50.00n/a3
Jul ’25NOK 39.35
NOK 56.00
+42.3%
7.6%NOK 59.00NOK 50.00n/a3
Jun ’25NOK 41.65
NOK 56.00
+34.5%
7.6%NOK 59.00NOK 50.00n/a3
May ’25NOK 40.20
NOK 56.00
+39.3%
7.6%NOK 59.00NOK 50.00n/a3
Apr ’25NOK 37.45
NOK 59.67
+59.3%
13.7%NOK 70.00NOK 50.00n/a3
Mar ’25NOK 37.90
NOK 63.00
+66.2%
7.9%NOK 70.00NOK 59.00n/a3
Feb ’25NOK 42.05
NOK 63.00
+49.8%
7.9%NOK 70.00NOK 59.00n/a3
Jan ’25NOK 41.00
NOK 63.00
+53.7%
7.9%NOK 70.00NOK 59.00n/a3
Dec ’24NOK 40.70
NOK 63.00
+54.8%
7.9%NOK 70.00NOK 59.00n/a3
Nov ’24NOK 48.40
NOK 66.33
+37.1%
7.8%NOK 70.00NOK 59.00NOK 36.553
Oct ’24NOK 52.20
NOK 65.67
+25.8%
9.3%NOK 70.00NOK 57.00NOK 39.103
Sep ’24NOK 47.35
NOK 78.50
+65.8%
27.4%NOK 100.00NOK 57.00NOK 36.952
Aug ’24NOK 48.00
NOK 78.50
+63.5%
27.4%NOK 100.00NOK 57.00NOK 39.702
Jul ’24NOK 49.90
NOK 87.00
+74.3%
14.9%NOK 100.00NOK 74.00NOK 39.352
Jun ’24NOK 52.00
NOK 87.00
+67.3%
14.9%NOK 100.00NOK 74.00NOK 41.652

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

Frontline

US$4.3b

A shipping company, engages in the seaborne transportation of crude oil and oil products worldwide.

FRO

US$219.10

7D

4.8%

1Y

-8.5%

Aker BP

NOK 142.8b

Explores for, develops, and produces oil and gas on the Norwegian Continental Shelf.

AKRBP

NOK 225.80

7D

1.0%

1Y

-28.2%

Seacrest Petroleo Bermuda

NOK 112.8m

An independent oil and gas production company, engages in the redevelopment of midlife onshore producing oil and gas fields in Brazil.

SEAPT

NOK 0.24

7D

-7.7%

1Y

-97.8%