Latest Ratios: P/E Ratio -1.8x · EV/EBITDA 7.5x · 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 | $5.6B | $4.0B | $3.5B | $4.9B | $3.2B | $1.8B | $1.4B | $4.2B | $3.2B | $4.2B | $5.4B |
| Enterprise Value | $10.2B | $8.6B | $10.2B | $12.0B | $10.3B | $8.5B | $8.6B | $12.3B | $11.1B | $9.1B | $10.8B |
| P/E Ratio → | -1.80 | — | — | — | — | — | — | — | — | — | 7.02 |
| P/S Ratio | 1.40 | 1.00 | 0.98 | 1.72 | 1.24 | 0.69 | 0.45 | 1.36 | 1.08 | 1.40 | 1.30 |
| P/B Ratio | 0.65 | 0.49 | 0.34 | 0.47 | 0.30 | 0.16 | 0.12 | 0.35 | 0.25 | 0.33 | 0.34 |
| P/FCF | 8.88 | 6.33 | 17.97 | — | — | 4.79 | 10.68 | — | 8.68 | 6.45 | 9.54 |
| P/OCF | 7.42 | 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 | 7.49 | 6.32 | 9.11 | 16.83 | 12.42 | 9.97 | 17.18 | 38.29 | — | — | 5.41 |
| EV / EBIT | 14.50 | — | — | — | — | — | 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 | 1.21 | 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 | 1.68 | 1.75 | 1.89 | 1.89 | 1.80 | 1.78 | 1.73 | 1.99 | 1.59 |
| Days Sales Outstanding | — | 49.71 | 58.42 | 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 | 11.3% | 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 |
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 -1.8x. The historical average is 26.5x.
Transocean Ltd.'s current EV/EBITDA is 7.5x. 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 -1.8x. 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.
Key Metrics
Top Statement Risk
Asset impairment and debt burden
Metrics are mathematically derived from official filings.
Margin Volatility Masks Core Stability
Gross margin swung from 86.8% in 2026Q1 to 37.1% in 2026Q2, as per financial statements, yet operating margin averaged near 20% over the last two quarters, suggesting underlying stability.
The 2026Q2 gross margin collapse appears tied to a one-time COGS spike, as operating margin remained at 15.7% despite the revenue decline. Excluding impairment-driven quarters like 2025Q3, net margin has turned positive, indicating that core drilling economics are stabilizing. Investors should monitor whether the 2026Q2 COGS spike recurs, as it would signal deteriorating contract terms rather than a transient event.
Returns Recover from Impairment Depths
ROIC improved from -2.2% in 2024Q3 to 0.9% in 2026Q2, as reported, while ROE turned positive at 2.1%, suggesting a gradual recovery from asset write-downs.
The sharp negative ROE in 2025Q3 (-22.1%) was driven by a $1.9B impairment, not operational deterioration. Excluding that quarter, ROIC has hovered near 1%, reflecting a capital-intensive fleet with high depreciation. The improvement in 2026Q2, albeit modest, indicates that dayrate recovery and cost control are beginning to lift returns off a depressed base. However, returns remain far below the cost of capital, implying that value creation is still elusive.
Working Capital Drag Persists
Cash conversion cycle extended to 77 days in 2026Q2 from 124 days in 2024Q1, as per reported figures, driven by a spike in DIO to 57 days and DPO at 38 days.
The 2026Q2 DIO jump to 57 days from 49 days in the prior quarter suggests inventory build-up, possibly for maintenance or new contracts, while DPO fell to 38 days, reducing supplier financing. This combination lengthened the cash conversion cycle, indicating less efficient working capital management. Asset turnover remains low at 0.06, typical for offshore drilling, but the working capital swing warrants monitoring as it could pressure liquidity if sustained.
Debt Burden Eases but Coverage Thin
D/E improved to 0.61 in 2026Q2 from 0.69 in 2024Q1, as reported, yet D/EBITDA remains elevated at 17.06, with interest coverage of 6.6x, reflecting a heavy debt load.
Total debt declined to $5.1B, but EBITDA remains low, keeping leverage multiples high. Interest coverage of 6.6x in 2026Q2 is a marked improvement from negative readings in 2025, but it is still vulnerable to dayrate fluctuations. The company's deleveraging path is evident, yet the absolute debt level and asset impairment risk suggest that refinancing needs could strain cash flow if market conditions weaken.
Liquidity Cushion Thins
Current ratio improved to 1.59 in 2026Q2, but cash dropped to $509M from $997M in 2025Q4, as per balance sheet data, signaling a thinner buffer against operating costs.
The quick ratio of 1.27 indicates adequate short-term coverage, but the cash decline is concerning given the capital-intensive nature of the business. With no dividends or buybacks, cash is being used for debt reduction and operations, yet the $509M cash balance may be insufficient to cover a prolonged downturn. Investors should monitor whether operating cash flow can sustain debt service and capex without further cash depletion.
EV/EBITDA Misleads in Cyclical Downturn
EV/EBITDA of 7.68 appears attractive, but as reported, EBITDA is depressed by impairments and low utilization, making the multiple misleading for Transocean's asset-heavy model.
The conventional EV/EBITDA ratio fails to capture the cyclicality and capital intensity of offshore drilling. With EBITDA currently at cyclical lows, the multiple is artificially low, while forward EV/EBITDA of 22.66 suggests the market expects a sharp recovery. A more appropriate metric is EV/EBITDA adjusted for fleet replacement value or normalized dayrates, which would provide a clearer picture of long-term earning power. Investors should focus on cash flow per rig and fleet utilization rather than trailing multiples.