Solstad Offshore Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: SOFF (NOK41.68) is trading below our estimate of fair value (NOK283.18)

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


Key Valuation Metric

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

Key metric: As SOFF is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SOFF. This is calculated by dividing SOFF's market cap by their current revenue.
What is SOFF's PS Ratio?
PS Ratio0.9x
SalesNOK 4.11b
Market CapNOK 3.81b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOFF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
AKAST Akastor
3.9x-35.8%NOK 3.6b
SEA1 Sea1 Offshore
1x-7.8%NOK 4.1b
BWO BW Offshore
0.7x-3.0%NOK 5.0b
NORAM NorAm Drilling
1.4x3.6%NOK 1.5b
SOFF Solstad Offshore
0.9x3.0%NOK 3.9b

Price-To-Sales vs Peers: SOFF is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.8x).


Price to Sales Ratio vs Industry

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

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
PRS Prosafe
0.08x24.4%US$10.31m
HAVI Havila Shipping
0.09xn/aUS$5.01m
No more companies available in this PS range
SOFF 0.9xIndustry Avg. 1.0xNo. of Companies5PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SOFF is good value based on its Price-To-Sales Ratio (0.9x) compared to the Norwegian Energy Services industry average (1x).


Price to Sales Ratio vs Fair Ratio

What is SOFF'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.

SOFF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: SOFF is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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