NorAm Drilling Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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 (NOK30.3) is trading below our estimate of fair value (NOK108.03)

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 Ratio	1.1x
Sales	US$100.53m
Market Cap	US$116.66m

NORAM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	4.7x
PEG Ratio	7.6x

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.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.9x
ABL ABL Group	0.4x	14.4%	NOK 1.2b
EIOF Eidesvik Offshore	1.3x	n/a	NOK 999.9m
REACH Reach Subsea	0.8x	8.4%	NOK 2.0b
SBX SeaBird Exploration	1.2x	3.0%	NOK 469.2m
NORAM NorAm Drilling	1.1x	3.6%	NOK 1.3b

Price-To-Sales vs Peers: NORAM is expensive based on its Price-To-Sales Ratio (1.1x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

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

2 Companies	Price / Sales	Estimated Growth	Market Cap
PRS Prosafe	0.08x	24.4%	US$11.63m
HAVI Havila Shipping	0.09x	n/a	US$4.45m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NORAM is expensive based on its Price-To-Sales Ratio (1.1x) compared to the Norwegian Energy Services industry average (0.9x).

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 Ratio	1.1x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: NORAM is expensive based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	NOK 30.30	NOK 48.50 +60.1%	3.1%	NOK 50.00	NOK 47.00	n/a	2
Dec ’25	NOK 34.50	NOK 48.50 +40.6%	3.1%	NOK 50.00	NOK 47.00	n/a	2
Nov ’25	NOK 36.55	NOK 52.00 +42.3%	9.8%	NOK 59.00	NOK 47.00	n/a	3
Oct ’25	NOK 39.10	NOK 52.00 +33.0%	9.8%	NOK 59.00	NOK 47.00	n/a	3
Sep ’25	NOK 36.95	NOK 52.00 +40.7%	9.8%	NOK 59.00	NOK 47.00	n/a	3
Aug ’25	NOK 39.70	NOK 56.00 +41.1%	7.6%	NOK 59.00	NOK 50.00	n/a	3
Jul ’25	NOK 39.35	NOK 56.00 +42.3%	7.6%	NOK 59.00	NOK 50.00	n/a	3
Jun ’25	NOK 41.65	NOK 56.00 +34.5%	7.6%	NOK 59.00	NOK 50.00	n/a	3
May ’25	NOK 40.20	NOK 56.00 +39.3%	7.6%	NOK 59.00	NOK 50.00	n/a	3
Apr ’25	NOK 37.45	NOK 59.67 +59.3%	13.7%	NOK 70.00	NOK 50.00	n/a	3
Mar ’25	NOK 37.90	NOK 63.00 +66.2%	7.9%	NOK 70.00	NOK 59.00	n/a	3
Feb ’25	NOK 42.05	NOK 63.00 +49.8%	7.9%	NOK 70.00	NOK 59.00	n/a	3
Jan ’25	NOK 41.00	NOK 63.00 +53.7%	7.9%	NOK 70.00	NOK 59.00	n/a	3
Dec ’24	NOK 40.70	NOK 63.00 +54.8%	7.9%	NOK 70.00	NOK 59.00	NOK 34.50	3
Nov ’24	NOK 48.40	NOK 66.33 +37.1%	7.8%	NOK 70.00	NOK 59.00	NOK 36.55	3
Oct ’24	NOK 52.20	NOK 65.67 +25.8%	9.3%	NOK 70.00	NOK 57.00	NOK 39.10	3
Sep ’24	NOK 47.35	NOK 78.50 +65.8%	27.4%	NOK 100.00	NOK 57.00	NOK 36.95	2
Aug ’24	NOK 48.00	NOK 78.50 +63.5%	27.4%	NOK 100.00	NOK 57.00	NOK 39.70	2
Jul ’24	NOK 49.90	NOK 87.00 +74.3%	14.9%	NOK 100.00	NOK 74.00	NOK 39.35	2
Jun ’24	NOK 52.00	NOK 87.00 +67.3%	14.9%	NOK 100.00	NOK 74.00	NOK 41.65	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/20 18:23
End of Day Share Price	2024/12/20 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

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.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* 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

NorAm Drilling AS is covered by 2 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.

Analyst	Institution
Truls Olsen	Fearnley Securities
Bård Rosef	Pareto Securities