Transocean Ltd.

NYSE:RIG Stock Report

Market Cap: US$3.1b

Transocean Valuation

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

Below Fair Value: RIG ($3.53) is trading below our estimate of fair value ($15.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RIG. This is calculated by dividing RIG's market cap by their current revenue.
What is RIG's PS Ratio?
PS Ratio0.9x
SalesUS$3.31b
Market CapUS$3.09b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
VAL Valaris
1.3x9.3%US$2.9b
HP Helmerich & Payne
1.1x10.9%US$3.0b
SDRL Seadrill
1.6x9.2%US$2.4b
PTEN Patterson-UTI Energy
0.5x1.0%US$3.0b
RIG Transocean
0.9x7.9%US$3.1b

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

Price to Sales Ratio vs Industry

How does RIG'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$75.37m
NINE Nine Energy Service
0.08x3.3%US$42.36m
ENGC ENGlobal
0.08xn/aUS$1.99m
CELP.Q Cypress Environmental Partners
0.003xn/aUS$370.83k
RIG 0.9xIndustry Avg. 0.9xNo. of Companies11PS00.61.21.82.43+
9 CompaniesEstimated GrowthMarket Cap
No more companies

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

Price to Sales Ratio vs Fair Ratio

What is RIG'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.

RIG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio0.9x

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

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 RIG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.53
US$5.31
+50.3%
14.0%US$6.50US$4.50n/a14
Dec ’25US$4.40
US$5.33
+21.2%
14.4%US$6.50US$4.50n/a13
Nov ’25US$4.24
US$5.52
+30.3%
15.3%US$7.00US$4.50n/a13
Oct ’25US$4.39
US$6.81
+55.2%
25.7%US$12.00US$4.50n/a14
Sep ’25US$4.74
US$7.17
+51.3%
21.4%US$12.00US$5.50n/a14
Aug ’25US$5.46
US$7.16
+31.1%
20.5%US$12.00US$5.50n/a15
Jul ’25US$5.05
US$7.20
+42.6%
19.9%US$12.00US$6.00n/a15
Jun ’25US$6.20
US$7.17
+15.6%
20.2%US$12.00US$6.00n/a15
May ’25US$5.27
US$7.21
+36.7%
19.7%US$12.00US$6.00n/a16
Apr ’25US$6.37
US$7.23
+13.4%
22.2%US$12.00US$5.50n/a15
Mar ’25US$5.09
US$7.33
+43.9%
23.2%US$12.00US$5.00n/a15
Feb ’25US$5.35
US$8.33
+55.8%
20.6%US$12.00US$5.50n/a15
Jan ’25US$6.35
US$8.59
+35.2%
20.8%US$12.00US$6.00n/a15
Dec ’24US$6.56
US$8.74
+33.2%
20.2%US$12.00US$6.00US$4.4014
Nov ’24US$6.65
US$8.72
+31.1%
21.9%US$12.00US$6.00US$4.2413
Oct ’24US$8.21
US$8.75
+6.6%
21.6%US$12.00US$6.00US$4.3913
Sep ’24US$8.46
US$8.58
+1.5%
21.9%US$12.00US$6.00US$4.7412
Aug ’24US$8.37
US$8.04
-3.9%
28.4%US$12.00US$5.00US$5.4612
Jul ’24US$7.01
US$7.25
+3.4%
28.7%US$12.00US$5.00US$5.0513
Jun ’24US$6.13
US$7.25
+18.2%
28.7%US$12.00US$5.00US$6.2013
May ’24US$5.95
US$7.43
+24.8%
29.6%US$12.00US$5.00US$5.2711
Apr ’24US$6.36
US$6.88
+8.1%
38.0%US$12.00US$4.00US$6.3710
Mar ’24US$7.08
US$6.02
-15.0%
34.3%US$10.00US$3.50US$5.0912
Feb ’24US$7.14
US$5.75
-19.5%
28.7%US$10.00US$3.50US$5.3513
Jan ’24US$4.56
US$5.14
+12.6%
26.9%US$8.00US$3.50US$6.3511
Dec ’23US$4.07
US$5.14
+26.2%
26.9%US$8.00US$3.50US$6.5611

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:07
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* 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

Transocean Ltd. is covered by 68 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kristoffer IdenArctic Securities ASA
null nullArgus Research Company
Fabrizio SpagnaAxia Financial Research