Latest Ratios: P/E Ratio 5.4x · EV/EBITDA 9.0x · ROE 36.3%. (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 | $5.2B | $3.6B | $3.2B | $5.2B | $5.1B | $2.7B | — | — | — | — | — |
| Enterprise Value | $5.8B | $4.2B | $4.0B | $5.7B | $5.0B | $2.6B | — | — | — | — | — |
| P/E Ratio → | 5.38 | 3.64 | 8.64 | 5.96 | 29.02 | — | — | — | — | — | — |
| P/S Ratio | 2.18 | 1.51 | 1.37 | 2.89 | 3.19 | 2.19 | — | — | — | — | — |
| P/B Ratio | 1.67 | 1.13 | 1.44 | 2.58 | 3.94 | 2.51 | — | — | — | — | — |
| P/FCF | 25.48 | 17.63 | — | — | — | — | — | — | — | — | — |
| P/OCF | 9.46 | 6.54 | 9.07 | 19.28 | 40.25 | — | — | — | — | — | — |
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 | — | 1.76 | 1.70 | 3.19 | 3.09 | 2.15 | — | — | — | — | — |
| EV / EBITDA | 8.96 | 6.48 | 8.48 | 36.81 | 38.58 | — | — | — | — | — | — |
| EV / EBIT | 11.61 | 6.39 | 11.00 | 138.48 | 77.89 | — | — | — | — | — | — |
| EV / FCF | — | 20.54 | — | — | — | — | — | — | — | — | — |
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 | 25.0% | 25.0% | 25.5% | 13.5% | 13.7% | 13.3% | -3.0% | 12.0% | 22.6% | 35.5% | 53.1% |
| Operating Margin | 20.9% | 20.9% | 14.9% | 3.0% | 2.3% | -72.8% | -303.7% | -32.6% | -13.8% | -7.2% | 33.5% |
| Net Profit Margin | 41.5% | 41.5% | 15.8% | 48.5% | 11.0% | -364.7% | -340.2% | -9.6% | -37.5% | -16.5% | 32.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.3% | 36.3% | 17.6% | 52.5% | 14.9% | -165.0% | -71.0% | -2.3% | -7.6% | -3.6% | 12.1% |
| ROA | 20.2% | 20.2% | 8.5% | 24.1% | 6.5% | -58.1% | -32.6% | -1.3% | -4.5% | -2.1% | 6.4% |
| ROIC | 10.9% | 10.9% | 9.5% | 2.2% | 2.6% | -26.5% | -33.5% | -3.6% | -1.4% | -0.8% | 5.7% |
| ROCE | 11.9% | 11.9% | 9.6% | 1.8% | 1.6% | -12.3% | -30.4% | -4.5% | -1.7% | -1.0% | 7.0% |
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 | 0.38 | 0.38 | 0.52 | 0.58 | 0.44 | 0.52 | 0.00 | 0.66 | 0.62 | 0.54 | 0.64 |
| Debt / EBITDA | 1.86 | 1.86 | 2.46 | 7.47 | 4.40 | — | — | — | 24.71 | 18.91 | 4.27 |
| Net Debt / Equity | — | 0.19 | 0.36 | 0.27 | -0.12 | -0.05 | -0.07 | 0.65 | 0.59 | 0.49 | 0.50 |
| Net Debt / EBITDA | 0.92 | 0.92 | 1.69 | 3.46 | -1.23 | — | — | — | 23.35 | 17.14 | 3.33 |
| Debt / FCF | — | 2.91 | — | — | — | — | — | — | — | — | 5.45 |
| Interest Coverage | 6.59 | 6.59 | 4.31 | 0.60 | 1.40 | — | -2.29 | -1.28 | -0.69 | 0.46 | 4.06 |
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 | 1.72 | 1.72 | 1.59 | 1.71 | 2.67 | 2.86 | 2.75 | 1.25 | 2.43 | 2.09 | 3.80 |
| Quick Ratio | 1.72 | 1.72 | 1.59 | 1.71 | 2.67 | 2.86 | 2.09 | 0.84 | 1.93 | 1.72 | 3.54 |
| Cash Ratio | 0.88 | 0.88 | 0.54 | 0.83 | 1.44 | 1.44 | 0.76 | 0.12 | 1.14 | 1.17 | 3.05 |
| Asset Turnover | — | 0.45 | 0.53 | 0.41 | 0.56 | 0.47 | 0.11 | 0.12 | 0.12 | 0.13 | 0.19 |
| Inventory Turnover | — | — | — | — | — | — | 5.26 | 5.32 | 4.92 | 4.27 | 5.78 |
| Days Sales Outstanding | — | 73.82 | 88.25 | 93.96 | 102.29 | 131.56 | 114.88 | 92.57 | 73.77 | 68.41 | 47.46 |
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 | — | — | — | — | — | — | — | — | — | — | 1.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 18.6% | 27.5% | 11.6% | 16.8% | 3.4% | — | — | — | — | — | — |
| FCF Yield | 3.9% | 5.7% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 1.9% | 2.8% | 3.9% | 3.9% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 1.9% | 2.8% | 3.9% | 3.9% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $71M | $73M | $75M | $76M | $75M | $75M | $92M | $109M | $91M | $75M |
Cyclical Revenue Volatility
According to current market data, Valaris trades at a forward P/E of 25.11, which appears to price in significant recovery expectations that may be disconnected from the recent deceleration in top-line growth observed in the company's latest quarterly filings compared to historical averages.
The elevated forward multiple suggests that investors are banking on a sharp rebound in dayrates and utilization, yet the current P/S of 2.23 indicates a premium valuation relative to the company's recent inability to generate consistent operating income. This valuation gap warrants caution, as it implies a growth trajectory that may not materialize if the offshore drilling cycle remains suppressed by regional capacity constraints.
Based on reported financial statements, Valaris has struggled to maintain positive ROIC, with figures hovering near -0.1% in 2026Q1, suggesting that the company's recent capital deployment into fleet reactivation has yet to yield the expected returns on invested capital compared to historical performance.
The persistent difficulty in generating meaningful returns on capital highlights the high cost of maintaining idle assets in a cyclical downturn. Investors should monitor whether management can improve asset utilization, as the current trend suggests that the company is effectively destroying value rather than compounding it through its current fleet strategy.
As indicated by recent quarterly data, Valaris exhibits a DSO of 90 days, which, when compared to industry peers, suggests that the company faces structural challenges in converting its project-based revenue into timely cash inflows, thereby straining its overall working capital efficiency.
The extended collection period appears to be a byproduct of the complex, multi-year contract structures inherent in the offshore drilling sector. This inefficiency forces the company to rely more heavily on its cash reserves to fund ongoing operations, which may limit its flexibility during periods of market volatility.
As reported in recent SEC filings, Valaris maintains a debt-to-equity ratio of 0.34, a figure that positions the company as one of the most conservatively capitalized entities in the offshore drilling sector when compared to more highly levered competitors like Transocean.
This disciplined approach to the balance sheet provides a critical safety net, allowing the company to navigate cyclical downturns without the immediate threat of insolvency. While this leverage profile is a clear strength, it also suggests that management is prioritizing financial stability over the aggressive, debt-funded expansion that has historically characterized the industry.
Based on an analysis of the company's financial reporting, the P/E ratio is the most commonly misapplied metric for Valaris, as it fails to account for the significant distortions caused by non-operating items and equity-method accounting from the ARO Drilling joint venture.
Investors should instead focus on EV/EBITDA or adjusted free cash flow, which provide a clearer view of the company's core operational earning power. Relying on headline P/E ratios risks overestimating the company's profitability, as these figures often include one-time gains that do not reflect the underlying cash-generating capacity of the drilling fleet.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VAL stock.
Valaris Limited's current P/E ratio is 5.4x. The historical average is 11.8x. This places it at the 25th percentile of its historical range.
Valaris Limited's current EV/EBITDA is 9.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.6x.
Valaris Limited's return on equity (ROE) is 36.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 2.3%.
Based on historical data, Valaris Limited is trading at a P/E of 5.4x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Valaris Limited has 25.0% gross margin and 20.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Valaris Limited's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.