Transocean Ltd.

NYSE:RIG Stock Report

Market Cap: US$6.3b

Transocean Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: RIG ($5.67) is trading below our estimate of future cash flow value ($6.63)

Significantly Below Future Cash Flow Value: RIG is trading below future cash flow value, but not by a significant amount.

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 Ratio1.5x
SalesUS$4.12b
Market CapUS$6.33b

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 Average1.8x
VAL Valaris
2.7x8.76%US$5.8b
NE Noble
2.5x8.07%US$7.2b
HP Helmerich & Payne
1.1x3.37%US$4.4b
PTEN Patterson-UTI Energy
1x5.67%US$4.9b
RIG Transocean
1.5x-2.00%US$6.3b

Price-To-Sales vs Peers: RIG is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (1.8x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
KLXE KLX Energy Services Holdings
0.05x8.51%US$32.76m
NINE.Q Nine Energy Service
0.0009xn/aUS$455.29k
ICDI.Q Independence Contract Drilling
0.002xn/aUS$414.67k
CELP.Q Cypress Environmental Partners
0.003xn/aUS$370.83k
RIG 1.5xIndustry Avg. 1.3xNo. of Companies11PS00.81.62.43.24+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RIG is expensive based on its Price-To-Sales Ratio (1.5x) compared to the US Energy Services industry average (1.3x).

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 Ratio1.5x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: RIG is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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$5.67
US$6.55
+15.59%
21.54%US$10.00US$4.50n/a12
Sep ’27US$5.92
US$6.55
+10.71%
21.54%US$10.00US$4.50n/a12
Aug ’27US$5.32
US$6.40
+20.38%
26.08%US$10.00US$4.00n/a12
Jul ’27US$4.87
US$6.30
+29.46%
28.35%US$10.00US$4.00n/a11
Jun ’27US$6.25
US$6.30
+0.87%
28.35%US$10.00US$4.00n/a11
May ’27US$6.84
US$5.91
-13.54%
30.04%US$10.00US$3.50n/a11
Apr ’27US$6.50
US$5.64
-13.22%
31.34%US$10.00US$3.00n/a11
Mar ’27US$6.48
US$5.64
-12.95%
31.34%US$10.00US$3.00n/a11
Feb ’27US$4.97
US$4.28
-13.82%
15.51%US$5.50US$3.00n/a12
Jan ’27US$4.13
US$4.26
+3.24%
15.40%US$5.50US$3.00n/a11
Dec ’26US$4.35
US$4.17
-4.24%
17.26%US$5.50US$3.00n/a13
Nov ’26US$3.84
US$4.03
+4.97%
18.52%US$5.50US$3.00n/a13
Oct ’26US$3.23
US$3.88
+20.03%
21.54%US$5.50US$2.50n/a13
Sep ’26US$3.03
US$3.88
+27.95%
21.54%US$5.50US$2.50US$5.9213
Aug ’26US$2.82
US$4.00
+41.84%
20.22%US$5.50US$2.50US$5.3213
Jul ’26US$2.66
US$4.09
+53.60%
20.41%US$5.50US$2.50US$4.8714
Jun ’26US$2.49
US$4.21
+69.10%
16.83%US$5.50US$3.00US$6.2514
May ’26US$2.34
US$4.33
+85.13%
18.28%US$6.00US$3.00US$6.8414
Apr ’26US$3.32
US$4.57
+37.59%
14.38%US$6.00US$3.50US$6.5014
Mar ’26US$2.95
US$4.71
+59.69%
12.01%US$6.00US$4.00US$6.4814
Feb ’26US$3.92
US$5.00
+27.64%
12.41%US$6.50US$4.25US$4.9714
Jan ’26US$3.75
US$5.31
+41.52%
14.04%US$6.50US$4.50US$4.1314
Dec ’25US$4.40
US$5.33
+21.15%
14.41%US$6.50US$4.50US$4.3513
Nov ’25US$4.24
US$5.52
+30.26%
15.30%US$7.00US$4.50US$3.8413
Oct ’25US$4.39
US$6.81
+55.22%
25.65%US$12.00US$4.50US$3.2314
Sep ’25US$4.74
US$7.17
+51.30%
21.36%US$12.00US$5.50US$3.0314
US$6.55
Fair Value
13.5% undervalued intrinsic discount
12
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/13 02:44
End of Day Share Price 2026/09/11 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

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.

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 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 Github.

Analyst Sources

Transocean Ltd. is covered by 48 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
null nullArgus Research Company
James WestBarclays