Valaris Limited (VAL) Stock

Valaris Limited (VAL) is a Energy stock trading at $88.03 (as of 2026-09-01), with a market capitalization of $6.10B and a trailing P/E of 6.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Valaris Limited provides offshore contract drilling services for the international oil and gas industry. It operates a fleet of offshore drilling rigs and delivers drilling services to oil and gas companies, including government-owned and independent operators, across regions such as the Gulf of Mexico, North Sea, Middle East, West Africa, Australia, and Southeast Asia.

Understand Valaris Limited: how it makes money

Valaris leases 56 offshore drilling rigs (jackups, drillships, semisubmersibles) to oil and gas operators worldwide, earning fee-based dayrates for each day a rig is working. Revenue splits roughly evenly across two rig types and a Saudi Aramco joint venture, so no single basin or contract drives the model.

The business converts half-a-billion-dollar steel platforms into daily fee income, so profit is really a utilization story: a handful of extra standby days per quarter can erase the already-thin operating margin.

Revenue by segment (latest quarter)
Jackups	$0.2B
Floaters	$0.2B
ARO Drilling	$0.1B

Business quality (Weak): Thinly margined, cyclical asset business. Revenue is contracting, operating leverage works both ways, and the low multiple prices in continued weakness.

Valuation: At 6× earnings, VAL trades 62% below the Petroleum & Natural Gas average (16×). Note: the low multiple may reflect one-time earnings items.

Bull case

Deep discount to sector multiple: At 5.9x earnings versus a 16x industry average (62% below), VAL trades as if the next downturn is locked in. For an operative, contracted fleet, that gap leaves substantial room for multiple expansion the moment the drilling cycle stabilizes.
No single rig type dominates: Jackups generate $200M (40% of revenue), Floaters $190M (38%), and ARO drilling $130M (26%). Spreading exposure across three rig types and multiple basins means no one capex cut or regulatory pause can zero out the P&L.

Bear case

Top line shrinking fast: Quarterly revenue of $500M is down 25% year over year, signaling that dayrates and/or utilization are compressing. In a contract-drilling model, falling revenue is a leading indicator because crew and operating costs do not shrink at the same pace.
Barely above break-even at the op level: A 20% gross margin feeds into only 4% operating margin, leaving very little cushion. A slight slip in dayrate or an extended stretch of standby days can tip a quarter into an operating loss.

Valuation — source: SEC EDGAR (first-party)
Price	$88.03
Market Cap	$6.10B
P/E Ratio	6.1
EV / EBITDA	13.2
Price / Book	1.93
Price / Sales	2.75
FCF Yield	3.3%
DCF Value (model)	$80.47
DCF Upside vs Price	-8.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$2.37B
Net Margin	41.5%
Revenue Growth (YoY)	-25.0%
EPS Growth (YoY)	-54.7%
FCF Growth (YoY)	-146.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	3.21 (safe)
Piotroski F-Score	7/9 (strong)

Valuation vs Sector & Industry
Stock P/E	6.1
Sector P/E (Energy)	16.1
Industry P/E (Petroleum & Natural Gas)	15.4
vs Sector	-62.2%
vs Industry	-60.6%

Company
Sector	Energy
Industry	Petroleum & Natural Gas
CEO	Christopher T. Weber
Employees	4,130
Country	BM
IPO Date	2021-05-03

Related Companies (Petroleum & Natural Gas; 8 comparable companies)

Data as of 2026-09-01.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.