Valaris (VAL) Stock Overview
Provides offshore contract drilling services in Brazil, the United Kingdom, Gulf of America, Australia, Angola, and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
VAL Community Fair Values
Create NarrativeSee what 64 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Valaris Limited Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$91.78 |
| 52 Week High | US$105.35 |
| 52 Week Low | US$35.20 |
| Beta | 0.97 |
| 1 Month Change | -7.94% |
| 3 Month Change | 47.06% |
| 1 Year Change | 144.94% |
| 3 Year Change | 58.46% |
| 5 Year Change | 323.93% |
| Change since IPO | 287.26% |
Recent News & Updates
Recent updates
Narrative Update • Apr 29
VAL: Acquisition Terms Will Likely Cap Future Upside Despite Buybacks
Analysts now see Valaris shares as worth $70.68 per share, up from $65.93. This reflects updated assumptions for slightly lower discount rates, a modestly higher revenue growth outlook, marginally stronger profit margins, and a P/E multiple that has been reset to 21.0x from 20.0x.
Narrative Update • Apr 15
VAL: Pending Transocean Deal And Contract Wins Will Shape Future Returns
Analysts have adjusted their price target on Valaris to $98, a $2 change that reflects updated assumptions for fair value, discount rate, revenue growth, profit margin, and future P/E. What's in the News Transocean Ltd.Seeking Alpha • Apr 08
Valaris: Pricing Has Reset, Earnings Haven't Yet
Summary Valaris is rated Buy, with fundamentals strong and a $4.7B backlog supporting earnings growth into 2026–2027. Recent contract repricing has lifted drillship day rates to $416k–$433k, but reported EBITDA still lags due to idle rigs and utilization. Transocean’s all-stock $5.8B acquisition values VAL at a forward 14.1x 2027 earnings, with integration and execution as key drivers. Upside depends on backlog conversion and utilization normalization; risks include execution delays and offshore cycle volatility. Read the full article on Seeking AlphaNarrative Update • Mar 31
VAL: Pending Transocean Merger And New Fair Value Will Shape Future Returns
Analysts have raised their fair value estimate for Valaris from $87.00 to $96.00, reflecting updated assumptions related to revenue growth, profit margins and future P/E expectations. What's in the News Transocean Ltd.Narrative Update • Mar 17
VAL: Acquisition Terms Will Likely Limit Upside Despite Buybacks
The analyst price target for Valaris has moved from $55.10 to $65.93 as analysts factor in updated assumptions around revenue growth, profit margins, discount rates, and future P/E levels. What's in the News Transocean Ltd.
Narrative Update • Mar 03
VAL: Planned Transocean Deal Will Leave Equity Outlook Constrained By Stretchy Earnings Multiple
Analysts have maintained their $47.00 price target for Valaris, noting that updated assumptions around discount rates, revenue growth, profit margins, and future P/E appear to offset one another at this time. What's in the News Transocean Ltd.Narrative Update • Feb 17
VAL: Pending Transocean Merger Will Likely Cap Upside Despite Contract Wins
Analysts have raised their Valaris price target from $65.00 to $87.00, citing updated assumptions that include a slightly lower discount rate, a revised revenue growth outlook, higher projected profit margins, and a higher future P/E multiple. What's in the News Transocean Ltd.Narrative Update • Feb 03
VAL: Future Offshore Contract Will Offer Limited Support To Stretched Valuation
Analysts now place their price target for Valaris at US$47, down US$2 from US$49. This reflects updated views on revenue growth, profit margins and the P/E multiple used in their models.Narrative Update • Jan 20
VAL: Long-Term Offshore Contract Will Support Stronger Outlook And Upside Potential
Analysts have modestly revised their price target on Valaris to reflect a fair value of $65.00. They point to slightly updated assumptions around the discount rate, revenue growth, profit margins, and future P/E as key drivers of the change.Narrative Update • Jan 05
VAL: Future Offshore Contracts And Buybacks Will Support Balanced Risk Profile
Analysts now see Valaris’ fair value at US$49.00, up from US$38.00, citing updated assumptions around revenue growth, a lower discount rate, and a slightly higher future P/E multiple as key drivers of the change. What's in the News Valaris secured a multi-year contract with Shell offshore Brazil for drillship VALARIS DS-8, expected to start in the first quarter of 2027, with an estimated 800-day duration and total contract value of about US$300 million.Narrative Update • Dec 15
VAL: Long-Term Offshore Contracts Will Drive Stronger Outlook Ahead
Analysts have raised their price target on Valaris by 5 percent, from 62 dollars to 65 dollars. They cite a lower perceived risk profile and slightly stronger long term revenue growth expectations, despite modestly softer margin assumptions.Narrative Update • Dec 01
VAL: Share Buybacks And New Contracts Are Expected To Drive Stability Ahead
Analysts have maintained their price target for Valaris at $55.10. They cite only minor adjustments to underlying forecasts, reflecting a slight uptick in profit margin and a marginally higher discount rate.Narrative Update • Nov 17
VAL: Share Buybacks And New Contracts Will Shape Outlook Into 2026
Narrative Update on Valaris: Analyst Price Target Revision Analysts have raised their price target for Valaris from $53.70 to $55.10 per share. They cite improved revenue growth estimates and a modestly lower discount rate as key factors in their updated outlook.Narrative Update • Nov 03
VAL: Share Buybacks And New Drilling Contracts Will Shape Future Performance
Analysts have raised their price target for Valaris from $52.10 to $53.70. This change reflects a more favorable outlook supported by improved revenue growth projections and a slightly lower discount rate.Analysis Article • Oct 01
Returns Are Gaining Momentum At Valaris (NYSE:VAL)
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...Analysis Article • Jul 14
These 4 Measures Indicate That Valaris (NYSE:VAL) Is Using Debt Reasonably Well
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Analysis Article • Jun 23
Investors Still Aren't Entirely Convinced By Valaris Limited's (NYSE:VAL) Earnings Despite 25% Price Jump
Valaris Limited ( NYSE:VAL ) shareholders would be excited to see that the share price has had a great month, posting a...Analysis Article • Jun 21
Valaris (NYSE:VAL) Shareholders Will Want The ROCE Trajectory To Continue
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...Seeking Alpha • Mar 13
Valaris' Offshore Dominance Set To Dominate Expectations
Summary Valaris is poised to reach $61.50 in 24 months due to overblown whitespace fears, improved fleet management, and favorable rig reactivation conditions. The company benefits from increased contract availability, premium fleet positioning, and efficient sales, capturing 42% of the remaining 2025 FIDs. Margin expansion is expected as low-priced contracts end and Valaris shifts to a higher-spec fleet, boosting day rates and profitability. Strategic geographical placement and efficient rig reactivations position Valaris to dominate in key regions, enhancing its attractiveness for new contracts. Read the full article on Seeking AlphaSeeking Alpha • Feb 17
Valaris: Mr. Toad's Wild Ride (Rating Upgrade)
Summary Valaris Limited experienced significant volatility, peaking at $79.92 before dropping to $41, with a potential buy target near the December low. The offshore drilling sector faces challenges like supply chain delays, regulatory approvals, and capital discipline, impacting the timing of new projects until 2026. Valaris' undervaluation, rising day rates, and strong backlog form a compelling buy thesis, but careful entry points are crucial given current market conditions. Despite a positive long-term outlook, I recommend holding VAL at current levels, with a keen interest in buying near the $41 mark. Read the full article on Seeking AlphaSeeking Alpha • Jan 13
Valaris: Market Sentiment Negatively Impacted By Jackup Exposure
Summary Valaris has one of the largest exposures to the jackup rig market. The company generated revenues of $213.7 million from the segment in Q3-24, representing ~33% of total revenues. If we include ARO Drilling, a 50/50 joint venture between Valaris and Saudi Aramco, the exposure to jackup rigs increases further. My convictions regarding global oil supply centers primarily around the fact that deepwater development is likely to become an increasingly important production source. Considering that jackup rigs are designed for operations in shallow water, Valaris' large exposure to this market segment is not ideal for expressing my macro views on deepwater development. Read the full article on Seeking Alpha
New Narrative • Aug 30
Securing Contracts And Enhancing Profitability Amidst Market Optimism
Strengthened contract backlog indicates a robust pipeline for future revenue growth, showcasing financial stability and sustained growth potential.Seeking Alpha • Aug 16
Valaris: Good Quarter, But Near-Term Outlook Disappoints - Buy
Summary Valaris reported strong Q2 results, with revenue and adjusted EBITDA hitting multi-year highs. Free cash flow remained negative due to a combination of higher working capital requirements and elevated capital expenditures. Despite the strong Q2 performance, management lowered full-year expectations due to increased near-term idle time for certain rigs and required repairs. With contracting activity not likely to pick up before the second half of next year, I have reduced my estimates and price target accordingly. Even when considering the muted near-term outlook, Valaris should still see a very material uplift in profitability and cash generation next year. Given more than 40% upside to my revised $90 price target, I am reiterating my "Buy" rating on the shares. Read the full article on Seeking AlphaSeeking Alpha • Jun 10
Valaris: Major Earnings Inflection Ahead, Buy
Summary Last month, leading offshore driller, Valaris, reported Q1/2024 results handily above expectations, mostly as a result of improved revenue efficiency. However, Adjusted EBITDA margin remained weak and cash flow continues to be pressured by elevated capital expenditures. Backlog of $4.0 billion reached a new recovery high and was up by 2.5% sequentially as customers exercised priced options for a number of rigs. On the conference call, management guided Q2/2024 above consensus expectations and largely reiterated full-year guidance. 2025 is likely to be the year of major earnings inflection for Valaris and the offshore drilling industry as a whole. Reiterating "Buy" rating and $92 price target. Read the full article on Seeking AlphaSeeking Alpha • Apr 02
Valaris: Buy Despite Near-Term Jackup Market Headwinds
Summary Leading offshore driller Valaris Limited reported better-than-expected Q4 2023 results with profitability well ahead of management's guidance and consensus expectations. On the conference call, management reiterated expectations for Adjusted EBITDA to increase to a range of $500-$550 million this year, up from a paltry $141 million in 2023. However, material capital expenditure requirements are likely to result in very limited free cash flow generation. Management expects very limited impact from Saudi Arabia's decision to no longer pursue an increase in maximum oil production capacity. With floater dayrates holding up well and impact from recent developments at Saudi Aramco likely to be limited, I continue to expect 2025 being a year of major earnings inflection for Valaris and the industry as a whole. Consequently, I am reiterating my "Buy" rating on the shares with an unchanged price target of $90. Read the full article on Seeking AlphaSeeking Alpha • Feb 10
Valaris Limited: Promising Outlook As Meaningful FCF Commences
Summary Valaris Limited has experienced volatility in its stock price over the past year, but the company is focused on improving its bottom line and has promising growth prospects. VAL operates in the offshore drilling industry and has a diverse fleet of equipment, allowing it to engage in different markets around the world. The company has secured partnerships and joint ventures, such as its collaboration with ARO Drilling, which contributes to its robust financial performance and solid balance sheet. Read the full article on Seeking AlphaSeeking Alpha • Nov 21
Valaris: Weak Quarter, But Long-Term Prospects Remain Intact - Buy
Summary Earlier this month, leading offshore driller Valaris reported weaker-than-expected third quarter results due to contract commencement delays and unplanned floater downtime, with these issues expected to carry over into Q4. On the conference call, management provided mediocre 2024 guidance and warned of lengthening lead times, resulting in more near-term idle time for its floater fleet. However, 2025 should see a very substantial increase in profitability and cash flow generation as a number of floaters will no longer work on legacy contracts at painfully low rates. Management remained optimistic on the industry's medium- and long-term outlook and expects dayrates to resume their ascent once the market has digested the influx of previously sidelined capacity. While offshore oil and gas service stocks have been volatile as of late, I consider the recent setback an opportunity to start scaling into the shares. Reiterating "Buy" with a price target of $90. Read the full article on Seeking AlphaShareholder Returns
| VAL | US Energy Services | US Market | |
|---|---|---|---|
| 7D | -10.0% | -5.7% | 2.1% |
| 1Y | 144.9% | 81.3% | 30.6% |
Return vs Industry: VAL exceeded the US Energy Services industry which returned 93.4% over the past year.
Return vs Market: VAL exceeded the US Market which returned 31% over the past year.
Price Volatility
| VAL volatility | |
|---|---|
| VAL Average Weekly Movement | 12.6% |
| Energy Services Industry Average Movement | 7.4% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: VAL's share price has been volatile over the past 3 months compared to the US market.
Volatility Over Time: VAL's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1975 | 3,800 | Anton Dibowitz | www.valaris.com |
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services in Brazil, the United Kingdom, Gulf of America, Australia, Angola, and internationally. It operates through four segments: Floaters, Jackups, ARO, and Other. The company owns an offshore drilling rig fleet, which includes drillships, dynamically positioned semisubmersible rigs, a moored semisubmersible rig, and jackup rigs.
Valaris Limited Fundamentals Summary
| VAL fundamental statistics | |
|---|---|
| Market cap | US$6.43b |
| Earnings (TTM) | US$1.00b |
| Revenue (TTM) | US$2.21b |
6.3x
P/E Ratio2.9x
P/S RatioIs VAL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| VAL income statement (TTM) | |
|---|---|
| Revenue | US$2.21b |
| Cost of Revenue | US$1.59b |
| Gross Profit | US$625.60m |
| Other Expenses | -US$378.70m |
| Earnings | US$1.00b |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 14.50 |
| Gross Margin | 28.26% |
| Net Profit Margin | 45.37% |
| Debt/Equity Ratio | 34.4% |
How did VAL perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/07 20:30 |
| End of Day Share Price | 2026/05/07 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
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.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* 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.
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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
Valaris Limited is covered by 44 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| null null | ABG Sundal Collier |
| James West | Barclays |
| Sungeun Kim | Barclays |