Latest Ratios: P/E Ratio 7.0x · EV/EBITDA 15.8x · 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 | $5.5B | $3.6B | $3.2B | $5.2B | $5.1B | $2.7B | — | — | — | — | — |
| Enterprise Value | $6.1B | $4.2B | $4.0B | $5.7B | $5.0B | $2.6B | — | — | — | — | — |
| P/E Ratio → | 7.03 | 3.64 | 8.64 | 5.96 | 29.02 | — | — | — | — | — | — |
| P/S Ratio | 2.59 | 1.51 | 1.37 | 2.89 | 3.19 | 2.19 | — | — | — | — | — |
| P/B Ratio | 1.78 | 1.13 | 1.44 | 2.58 | 3.94 | 2.51 | — | — | — | — | — |
| P/FCF | — | 17.63 | — | — | — | — | — | — | — | — | — |
| P/OCF | 10.11 | 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 | 15.76 | 6.48 | 8.48 | 36.81 | 38.58 | — | — | — | — | — | — |
| EV / EBIT | 12.33 | 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 | — | — | — | 20.55 | 15.14 | 3.83 |
| 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 | — | — | — | 19.42 | 13.72 | 2.99 |
| 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 | 14.2% | 27.5% | 11.6% | 16.8% | 3.4% | — | — | — | — | — | — |
| FCF Yield | — | 5.7% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 1.8% | 2.8% | 3.9% | 3.9% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 1.8% | 2.8% | 3.9% | 3.9% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $71M | $73M | $75M | $76M | $75M | $75M | $92M | $109M | $91M | $75M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying VAL stock.
Valaris Limited's current P/E ratio is 7.0x. The historical average is 11.8x. This places it at the 50th percentile of its historical range.
Valaris Limited's current EV/EBITDA is 15.8x. 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 7.0x. This is at the 50th 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.
Key Metrics
Top Statement Risk
Erratic earnings quality and cash burn
Metrics are mathematically derived from official filings.
Low Trailing Multiple Masks Earnings Quality
Based on reported figures, Valaris trades at a trailing P/E of 5.58 and EV/EBITDA of 9.26, a discount to the peer group, yet trailing earnings are inflated by one-time items and the forward P/E of 24.52 implies normalized earnings are far lower.
The gap between a 5.58 trailing P/E and a 24.52 forward P/E suggests the market is discounting the 2025Q4 net income spike of $717.5M, which sits against operating cash flow of only $64.6M. The EV/EBITDA of 9.26 sits near the Noble and Transocean range of roughly 7.2, so the premium on an enterprise basis appears modest but not clearly cheap. Investors should monitor whether forward earnings recovery materializes, as the valuation case rests more on normalized rig utilization than on trailing reported profitability.
Margins Distorted by Non-Recurring Swings
Reported gross margins swing from 10.6% to 102.0% and net margins from -6.1% to 133.5% across recent quarters, suggesting headline profitability is driven by irregular entries rather than stable earning power.
Operating margin of 13.7% in 2026Q3 is a more useful reference point than net margin, which appears heavily influenced by non-operating items. Operating margin has trended down from roughly 26.7% in 2025Q2 to the low teens, which may indicate softening day rates or cost pressure. Earning power should be anchored to operating margin and free cash flow rather than reported net income until the source of the volatility is clarified.
Returns Compressed Despite Equity Rebuild
ROIC has fallen from roughly 4.1% in 2025Q2 to 1.6% in 2026Q3 according to reported figures, while ROE of 1.4% sits well below the 67.3% reported by PagerDuty, a comparison that reflects different business models rather than operating quality.
The decline in ROIC appears driven by a larger invested capital base, with equity and net PP&E both expanding, while operating profit has not kept pace. ROE of 1.4% against an equity base of roughly $3.3B suggests the expanded balance sheet is not yet generating commensurate returns. Investors should monitor whether the capital base growth reflects productive rig reinvestment or idle capacity.
Debt Service Comfortable on Reported Coverage
Reported debt-to-EBITDA of 9.00 and interest coverage of 5.07 in 2026Q3 suggest debt service remains manageable, though the trend in coverage has been erratic, falling to 1.43 in 2026Q1 before recovering.
Debt-to-equity improved from 0.55 to 0.35 over the period, as total debt held near $1.2B while equity expanded, which appears to strengthen the capital structure. However, the debt-to-EBITDA multiple remains elevated at 9.00, indicating that leverage relative to earnings power is high even though it looks modest against book equity. Refinancing exposure cannot be assessed from the supplied data and warrants further investigation.
Current Ratio Adequate but Cash Thinning
The current ratio of 1.64 in 2026Q3 appears adequate, yet cash declined from $662.7M in 2025Q3 to $525.1M in 2026Q3 according to reported figures, narrowing the buffer against continued free cash flow burn.
Because the quick ratio equals the current ratio, inventory is negligible, so liquidity depends entirely on cash and receivables. Free cash flow was negative in several recent quarters, including -$92.4M in 2026Q2, which would erode the cash position if sustained. Under a severe downturn, the cash cushion appears thinner than the headline current ratio suggests, and investors should monitor cash burn against the remaining liquidity.
Headline Profitability Misleads on Earnings Power
The most misapplied metric for this drilling business is trailing net margin or P/E, which as reported figures show can swing from negative to over 130% within a year due to non-operating items rather than operating performance.
Applying trailing P/E to a capital-intensive drilling contractor obscures the cyclical and lumpy nature of contract earnings and one-time gains. Operating cash flow relative to operating income, or normalized free cash flow through the cycle, provides a more reliable read on earning power. Until the composition of 2025Q4 net income is clarified, the trailing P/E of 5.58 should not be treated as evidence of cheapness.