Latest Ratios: P/E Ratio -1.7x · EV/EBITDA 6.7x · ROE -31.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.5B | $4.0B | $3.5B | $4.9B | $3.2B | $1.8B | $1.4B | $4.2B | $3.2B | $4.2B | $5.4B |
| Enterprise Value | $9.2B | $8.6B | $10.2B | $12.0B | $10.3B | $8.5B | $8.6B | $12.3B | $11.1B | $9.1B | $10.8B |
| P/E Ratio → | -1.65 | — | — | — | — | — | — | — | — | — | 7.02 |
| P/S Ratio | 1.14 | 1.00 | 0.98 | 1.72 | 1.24 | 0.69 | 0.45 | 1.36 | 1.08 | 1.40 | 1.30 |
| P/B Ratio | 0.59 | 0.49 | 0.34 | 0.47 | 0.30 | 0.16 | 0.12 | 0.35 | 0.25 | 0.33 | 0.34 |
| P/FCF | 7.24 | 6.33 | 17.97 | — | — | 4.79 | 10.68 | — | 8.68 | 6.45 | 9.54 |
| P/OCF | 6.05 | 5.29 | 7.76 | 29.74 | 7.11 | 3.06 | 3.57 | 12.38 | 5.82 | 3.65 | 2.83 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.18 | 2.88 | 4.23 | 4.01 | 3.32 | 2.74 | 3.98 | 3.67 | 3.05 | 2.60 |
| EV / EBITDA | 6.74 | 6.32 | 9.11 | 16.83 | 12.42 | 9.97 | 17.18 | 38.29 | — | — | 5.41 |
| EV / EBIT | 13.04 | — | — | — | — | — | 254.11 | — | — | — | 8.06 |
| EV / FCF | — | 13.78 | 52.62 | — | — | 23.09 | 64.96 | — | 29.59 | 13.99 | 19.09 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.4% | 83.4% | 79.0% | 73.7% | 71.5% | 71.0% | 75.2% | 72.3% | 72.9% | 72.0% | 78.5% |
| Operating Margin | 17.8% | 17.8% | 10.6% | -3.0% | -0.8% | -4.4% | -15.6% | -23.3% | -41.5% | -84.3% | 26.6% |
| Net Profit Margin | -73.5% | -73.5% | -14.5% | -33.7% | -24.1% | -23.2% | -18.0% | -40.6% | -66.1% | -105.2% | 18.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -31.7% | -31.7% | -4.9% | -9.0% | -5.6% | -5.2% | -4.9% | -10.0% | -15.5% | -21.9% | 5.1% |
| ROA | -16.7% | -16.7% | -2.6% | -4.7% | -3.0% | -2.8% | -2.5% | -5.0% | -8.3% | -12.7% | 2.9% |
| ROIC | 3.6% | 3.6% | 1.6% | -0.4% | -0.1% | -0.5% | -1.9% | -2.6% | -4.9% | -9.7% | 3.9% |
| ROCE | 4.4% | 4.4% | 2.0% | -0.5% | -0.1% | -0.6% | -2.3% | -3.1% | -5.5% | -10.9% | 4.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.70 | 0.75 | 0.72 | 0.69 | 0.73 | 0.83 | 0.76 | 0.58 | 0.54 |
| Debt / EBITDA | 4.15 | 4.15 | 6.50 | 11.04 | 9.41 | 9.05 | 16.65 | 30.74 | — | — | 4.23 |
| Net Debt / Equity | — | 0.57 | 0.65 | 0.68 | 0.66 | 0.60 | 0.63 | 0.68 | 0.60 | 0.38 | 0.34 |
| Net Debt / EBITDA | 3.42 | 3.42 | 6.00 | 9.97 | 8.58 | 7.90 | 14.35 | 25.17 | — | — | 2.71 |
| Debt / FCF | — | 7.44 | 34.65 | — | — | 18.30 | 54.28 | — | 20.90 | 7.54 | 9.54 |
| Interest Coverage | -4.31 | -4.31 | -0.44 | -0.46 | -0.00 | -0.05 | 0.06 | -0.82 | -1.86 | -5.12 | 3.28 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.56 | 1.56 | 1.47 | 1.52 | 1.29 | 1.88 | 1.98 | 2.11 | 2.71 | 3.36 | 2.57 |
| Quick Ratio | 1.27 | 1.27 | 1.47 | 1.22 | 1.04 | 1.57 | 1.66 | 1.83 | 2.38 | 3.06 | 2.29 |
| Cash Ratio | 0.75 | 0.75 | 0.34 | 0.71 | 0.44 | 0.75 | 0.83 | 1.04 | 1.48 | 2.17 | 1.54 |
| Asset Turnover | — | 0.25 | 0.18 | 0.14 | 0.13 | 0.12 | 0.14 | 0.13 | 0.12 | 0.13 | 0.15 |
| Inventory Turnover | 1.74 | 1.74 | — | 1.75 | 1.89 | 1.89 | 1.80 | 1.78 | 1.73 | 1.99 | 1.59 |
| Days Sales Outstanding | — | 49.71 | 58.73 | 65.99 | 68.75 | 70.26 | 67.51 | 77.30 | 73.05 | 73.17 | 78.77 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | 14.2% |
| FCF Yield | 13.8% | 15.8% | 5.6% | — | — | 20.9% | 9.4% | — | 11.5% | 15.5% | 10.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $960M | $925M | $768M | $699M | $637M | $615M | $612M | $468M | $391M | $367M |
High Debt Maturity Profile
According to recent market data, Transocean trades at a forward EV/EBITDA of 20.01, which appears to command a significant premium over peers like Noble Corporation, suggesting that investors are pricing in the potential for explosive operating leverage as high-spec asset scarcity drives future dayrate expansion.
The negative TTM P/E ratio highlights the disconnect between current GAAP earnings and the company's underlying cash-generating potential. This valuation suggests that the market is looking past current accounting losses, focusing instead on the long-term scarcity value of the 20k psi drillship fleet.
As reported in financial statements, Transocean's ROIC has struggled to break above 1.7% in 2026Q1, indicating that despite the recent recovery in dayrates, the company's massive capital base continues to generate returns that remain well below the cost of capital required for offshore drilling operations.
The persistent low ROIC suggests that the company is still in the early stages of recovering from years of asset impairments and heavy debt-servicing burdens. Investors should monitor whether future contract renewals can drive margins high enough to meaningfully improve these returns on invested capital.
Based on RIG's reported figures, the cash conversion cycle remains highly erratic, with DSO fluctuating around 49 to 66 days, reflecting the complex, milestone-based payment structures inherent in multi-year ultra-deepwater drilling contracts that often delay cash realization relative to revenue recognition.
The lack of consistent DIO and CCC data suggests that inventory management is less critical than the timing of mobilization fees and contract-specific receivables. This volatility in working capital appears to be a structural feature of the business model rather than an operational failure.
Data from recent balance sheets reveals that Transocean's interest coverage ratio remains precarious, swinging between 1.03 and -11.32 over the last ten quarters, which underscores the company's ongoing vulnerability to interest rate fluctuations and the necessity of maintaining high utilization to meet debt obligations.
While the debt-to-equity ratio has shown some stabilization, the absolute level of debt continues to act as a drag on equity value. The company's ability to refinance maturing notes without further dilution remains the most significant risk factor for long-term shareholders.
Investors frequently misapply the P/E ratio to Transocean, as the metric is heavily distorted by non-cash depreciation and periodic asset impairments that do not reflect the company's actual ability to generate cash from its high-spec ultra-deepwater fleet in a tightening supply environment.
A more appropriate metric for this business model is EV/EBITDA or EV per high-spec rig, which accounts for the company's capital structure and the underlying asset value. Relying on P/E in this context likely leads to an inaccurate assessment of the company's true earnings power.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RIG stock.
Transocean Ltd.'s current P/E ratio is -1.7x. The historical average is 26.5x.
Transocean Ltd.'s current EV/EBITDA is 6.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.6x.
Transocean Ltd.'s return on equity (ROE) is -31.7%. The historical average is -0.5%.
Based on historical data, Transocean Ltd. is trading at a P/E of -1.7x. Compare with industry peers and growth rates for a complete picture.
Transocean Ltd. has 83.4% gross margin and 17.8% operating margin. Operating margin between 10-20% is typical for established companies.
Transocean Ltd.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.