Diamond Offshore Drilling, Inc.

NYSE:DO Stock Report

Market Cap: US$1.5b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Diamond Offshore Drilling Valuation

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

Below Fair Value: DO ($13.99) is trading below our estimate of fair value ($44.64)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DO. This is calculated by dividing DO's market cap by their current revenue.
What is DO's PS Ratio?
PS Ratio1.4x
SalesUS$1.00b
Market CapUS$1.48b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
SDRL Seadrill
1.8x10.8%US$2.6b
NBR Nabors Industries
0.2x9.3%US$701.4m
HP Helmerich & Payne
1.2x11.3%US$3.4b
VAL Valaris
1.4x11.9%US$3.3b
DO Diamond Offshore Drilling
1.4x6.6%US$1.5b

Price-To-Sales vs Peers: DO is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.3x).


Price to Sales Ratio vs Industry

How does DO's PS Ratio compare vs other companies in the US Energy Services Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
KLXE KLX Energy Services Holdings
0.1x3.4%US$101.33m
NINE Nine Energy Service
0.1x3.0%US$59.73m
ENSV Enservco
0.1xn/aUS$2.73m
ICDI Independence Contract Drilling
0.007x6.9%US$1.12m
DO 1.4xIndustry Avg. 1.0xNo. of Companies10PS00.61.21.82.43+
9 CompaniesEstimated GrowthMarket Cap
No more companies

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


Price to Sales Ratio vs Fair Ratio

What is DO'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.

DO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: DO is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


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 DO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$19.42
0%
7.9%US$22.00US$17.00n/a6
Nov ’25n/a
US$19.42
0%
7.9%US$22.00US$17.00n/a6
Oct ’25n/a
US$19.42
0%
7.9%US$22.00US$17.00n/a6
Sep ’25US$14.34
US$19.42
+35.4%
7.9%US$22.00US$17.00n/a6
Aug ’25US$15.81
US$19.00
+20.2%
10.5%US$22.00US$16.00n/a6
Jul ’25US$15.12
US$19.00
+25.7%
10.5%US$22.00US$16.00n/a6
Jun ’25US$15.18
US$19.00
+25.2%
10.5%US$22.00US$16.00n/a6
May ’25US$12.29
US$18.83
+53.2%
9.4%US$21.00US$16.00n/a6
Apr ’25US$13.70
US$18.83
+37.5%
9.4%US$21.00US$16.00n/a6
Mar ’25US$11.85
US$19.17
+61.7%
11.8%US$23.00US$16.00n/a6
Feb ’25US$11.99
US$19.17
+59.9%
11.8%US$23.00US$16.00n/a6
Jan ’25US$13.00
US$19.17
+47.4%
11.8%US$23.00US$16.00n/a6
Dec ’24US$13.20
US$19.60
+48.5%
11.5%US$23.00US$16.00n/a5
Nov ’24US$12.70
US$18.75
+47.6%
8.7%US$20.00US$16.00n/a4
Oct ’24US$14.68
US$18.75
+27.7%
8.7%US$20.00US$16.00n/a4
Sep ’24US$15.26
US$17.33
+13.6%
10.9%US$20.00US$16.00US$14.343
Aug ’24US$15.64
US$17.33
+10.8%
10.9%US$20.00US$16.00US$15.813
Jul ’24US$14.24
US$17.00
+19.4%
12.7%US$20.00US$15.00US$15.123
Jun ’24US$11.65
US$17.00
+45.9%
12.7%US$20.00US$15.00US$15.183
May ’24US$11.48
US$17.00
+48.1%
12.7%US$20.00US$15.00US$12.293
Apr ’24US$12.04
US$17.00
+41.2%
12.7%US$20.00US$15.00US$13.703
Mar ’24US$12.27
US$15.33
+25.0%
29.3%US$21.00US$10.00US$11.853
Feb ’24US$12.20
US$13.50
+10.7%
25.9%US$17.00US$10.00US$11.992
Jan ’24US$10.40
US$13.50
+29.8%
25.9%US$17.00US$10.00US$13.002
Dec ’23US$9.80
US$13.50
+37.8%
25.9%US$17.00US$10.00US$13.202
Nov ’23US$9.72
US$9.50
-2.3%
5.3%US$10.00US$9.00US$12.702

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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