SBM Offshore Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SBFF.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SBFF.Y ($18.8) is trading below our estimate of fair value ($41.84)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SBFF.Y?

Key metric: As SBFF.Y is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SBFF.Y. This is calculated by dividing SBFF.Y's market cap by their current earnings.
What is SBFF.Y's PE Ratio?
PE Ratio	7.8x
Earnings	US$428.00m
Market Cap	US$3.36b

SBFF.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	12.6x
PEG Ratio	-1x

Price to Earnings Ratio vs Peers

How does SBFF.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for SBFF.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	63.8x
OII Oceaneering International	22.3x	n/a	US$2.9b
KGS Kodiak Gas Services	156.8x	73.7%	US$3.6b
USAC USA Compression Partners	44.3x	30.7%	US$2.8b
AROC Archrock	31.6x	29.7%	US$4.5b
SBFF.Y SBM Offshore	7.8x	-7.6%	US$3.2b

Price-To-Earnings vs Peers: SBFF.Y is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (64.2x).

Price to Earnings Ratio vs Industry

How does SBFF.Y's PE Ratio compare vs other companies in the US Energy Services Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
NCSM NCS Multistage Holdings	1.3x	-107.5%	US$59.34m
BASX.Q Basic Energy Services	n/a	n/a	US$24.00

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SBFF.Y is good value based on its Price-To-Earnings Ratio (7.8x) compared to the US Energy Services industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is SBFF.Y's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SBFF.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SBFF.Y's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Hafnia

NOK 31.5b

Owns and operates oil product tankers in Bermuda.

HAFN

NOK 5.49

1.5%

-18.8%

Civitas Resources

US$5.0b

An exploration and production company, focuses on the acquisition, development, and production of oil and natural gas in the Rocky Mountain region, primarily in the Field of the Denver-Julesburg Basin of Colorado.

CIVI

US$52.28

1.2%

-23.7%

Cenovus Energy

CA$41.3b

Develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally.

CVE

CA$16.20

2.3%

-7.5%