Subsea 7 Valuation

Is SUBC 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-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 SUBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUBC (NOK172.55) is trading below our estimate of fair value (NOK305.39)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SUBC 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/Revenue0.9x
Enterprise Value/EBITDA10.2x
PEG Ratio6.6x

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SUBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
AKSO Aker Solutions
0.5x3.2%kr18.9b
TGS TGS
1.8x9.9%kr15.5b
DOFG DOF Group
1.1x7.1%kr13.0b
SIOFF Siem Offshore
2.3x7.7%kr8.2b
SUBC Subsea 7
0.8x4.4%kr51.7b

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


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a36.6%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a36.6%
n/an/an/a
No more companies

Price-To-Sales vs Industry: SUBC is good value based on its Price-To-Sales Ratio (0.8x) compared to the Norwegian Energy Services industry average (1.2x).


Price to Sales Ratio vs Fair Ratio

What is SUBC'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.

SUBC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: SUBC is expensive based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


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 SUBC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentkr172.55
kr184.57
+7.0%
12.4%kr214.00kr112.15n/a18
Mar ’25kr158.95
kr174.06
+9.5%
13.0%kr199.92kr107.32n/a18
Feb ’25kr143.85
kr171.67
+19.3%
13.2%kr195.01kr106.52n/a19
Jan ’25kr148.20
kr165.14
+11.4%
13.2%kr191.92kr104.84n/a19
Dec ’24kr151.90
kr172.30
+13.4%
13.7%kr202.08kr110.39n/a19
Nov ’24kr148.85
kr174.16
+17.0%
13.7%kr218.71kr122.08n/a19
Oct ’24kr147.40
kr165.92
+12.6%
16.6%kr209.75kr95.48n/a18
Sep ’24kr140.70
kr166.17
+18.1%
16.7%kr208.77kr95.03n/a18
Aug ’24kr138.05
kr156.24
+13.2%
18.2%kr199.65kr90.88n/a18
Jul ’24kr133.65
kr155.28
+16.2%
18.5%kr201.40kr90.61n/a17
Jun ’24kr110.30
kr158.43
+43.6%
18.7%kr204.65kr89.87n/a17
May ’24kr121.65
kr153.50
+26.2%
19.3%kr201.63kr90.15n/a18
Apr ’24kr123.90
kr145.75
+17.6%
21.6%kr200.59kr80.66n/a15
Mar ’24kr135.30
kr133.66
-1.2%
18.9%kr168.59kr80.03kr158.9517
Feb ’24kr123.80
kr122.96
-0.7%
18.9%kr160.19kr67.86kr143.8517
Jan ’24kr113.05
kr120.19
+6.3%
17.6%kr150.91kr68.89kr148.2017
Dec ’23kr112.10
kr120.19
+7.2%
17.6%kr150.91kr68.89kr151.9017
Nov ’23kr106.20
kr116.11
+9.3%
18.5%kr160.14kr74.74kr148.8517
Oct ’23kr86.50
kr117.13
+35.4%
19.2%kr163.48kr76.29kr147.4017
Sep ’23kr87.46
kr108.10
+23.6%
19.3%kr151.53kr70.17kr140.7017
Aug ’23kr85.94
kr105.92
+23.2%
18.1%kr148.77kr79.66kr138.0517
Jul ’23kr77.00
kr107.58
+39.7%
17.2%kr151.80kr69.95kr133.6517
Jun ’23kr97.58
kr104.49
+7.1%
16.8%kr150.01kr75.30kr110.3017
May ’23kr78.00
kr98.51
+26.3%
13.3%kr125.27kr75.16kr121.6517
Apr ’23kr83.44
kr90.34
+8.3%
12.5%kr108.74kr70.01kr123.9017
Mar ’23kr62.20
kr93.60
+50.5%
12.5%kr111.21kr68.93kr135.3018

Analyst Forecast: Target price is less than 20% higher than the current share price.


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