Seadrill (NYSE:SDRL): Exploring Current Valuation After Recent Share Price Rebound

Seadrill (NYSE:SDRL) has been making waves lately, catching the attention of investors who are closely watching its share price movements. With no single event to point to, the company’s performance might simply be raising eyebrows among market watchers who are asking whether its current momentum is the beginning of a new trend or just noise in a volatile sector. In the bigger picture, Seadrill’s stock has had a rocky year, with a decline of 14% over the past 12 months. That comes despite a rebound of nearly 12% over the past month and an almost 19% gain over the past 3 months. After lagging for much of the year, this recent positive movement could hint at changing sentiment or a shift in risk perception. Still, the longer-term gains of 25% over three years stand out as a reminder of the company’s ability to recover from setbacks. So after this year’s ups and downs, is there an undervalued opportunity in Seadrill, or has the market already priced in any future growth on the horizon?

Most Popular Narrative: 24.9% Undervalued

The prevailing narrative suggests that Seadrill is trading well below its estimated fair value, with optimistic expectations for future recovery and growth.

“A significant pickup in offshore exploration activity is expected, as major operators like TotalEnergies and BP commit to multi-year, high-volume drilling campaigns, and regulatory changes in the US Gulf and Brazil drive more lease sales. This should directly increase future revenue, fleet utilization, and dayrate potential from late 2026 onward.”

Curious how analysts justify such a bullish outlook? The real secret lies in their future projections, with expectations of high double-digit improvements that could change everything for Seadrill. Want the details on what’s driving this aggressive valuation? There are key numbers and assumptions beneath the surface that challenge conventional wisdom. Stay tuned to discover the financial forces shaping this narrative.

Result: Fair Value of $43.5 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer utilization and administrative delays in key regions could limit Seadrill’s near-term revenue growth and could also dampen margin improvement expectations for investors.

Find out about the key risks to this Seadrill narrative.

Another View: Market Comparison Tells a Different Story

Looking at Seadrill through a typical market comparison raises concerns, with its valuation appearing much higher than the sector average. This could suggest the company is overhyped relative to its peers, or it may hint at hidden strengths.

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Seadrill to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Seadrill Narrative

If you see things differently or want to dive into the details yourself, you can craft your own take in just a few minutes. Do it your way

A great starting point for your Seadrill research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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