Latest Ratios: P/E Ratio 6.0x · EV/EBITDA 9.8x · 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 | $5.7B | $3.6B | $3.2B | $5.2B | $5.1B | $2.7B | — | — | — | — | — |
| Enterprise Value | $6.3B | $4.2B | $4.0B | $5.7B | $5.0B | $2.6B | — | — | — | — | — |
| P/E Ratio → | 5.96 | 3.64 | 8.64 | 5.96 | 29.02 | — | — | — | — | — | — |
| P/S Ratio | 2.41 | 1.51 | 1.37 | 2.89 | 3.19 | 2.19 | — | — | — | — | — |
| P/B Ratio | 1.85 | 1.13 | 1.44 | 2.58 | 3.94 | 2.51 | — | — | — | — | — |
| P/FCF | 28.21 | 17.63 | — | — | — | — | — | — | — | — | — |
| P/OCF | 10.47 | 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 | 9.82 | 6.48 | 8.48 | 36.81 | 38.58 | — | — | — | — | — | — |
| EV / EBIT | 12.72 | 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 | 16.8% | 27.5% | 11.6% | 16.8% | 3.4% | — | — | — | — | — | — |
| FCF Yield | 3.5% | 5.7% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 1.7% | 2.8% | 3.9% | 3.9% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 1.7% | 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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Quick answers to the most common questions about buying VAL stock.
Valaris Limited's current P/E ratio is 6.0x. The historical average is 11.8x. This places it at the 25th percentile of its historical range.
Valaris Limited's current EV/EBITDA is 9.8x. 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 6.0x. 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.
Key Metrics
Top Statement Risk
Revenue decline and margin volatility
Metrics are mathematically derived from official filings.
Margin Volatility Masks Underlying Earning Power
Valaris' gross margin swung from 35.7% in 2025Q2 to 10.6% in 2026Q1, then to 102.0% in 2026Q2 due to negative COGS, per quarterly filings, indicating severe accounting distortions.
The reported gross margin of 102.0% in 2026Q2 is not sustainable and likely reflects a one-time adjustment, as COGS turned negative. Excluding this anomaly, operating margins have compressed from 26.7% in 2025Q2 to 9.5% in 2026Q2, suggesting that the company's pricing power is eroding amid revenue decline. Investors should focus on normalized operating margin, which appears to be trending downward, rather than the distorted gross margin.
ROIC Stagnant Despite Equity Growth
ROIC has remained below 4.2% over the past ten quarters, with 2026Q2 at 1.0%, according to reported figures, indicating that the company is not generating adequate returns on its expanding capital base.
Despite equity growing from $2.0B to $3.2B over the period, ROIC has not improved, hovering in the low single digits. This suggests that the heavy investment in PP&E (up to $2.2B) is not yet yielding commensurate returns, possibly due to the cyclical downturn in offshore drilling. The gap between ROE (1.6% in 2026Q2) and ROIC (1.0%) is narrow, implying that leverage is not amplifying returns, which is consistent with a deleveraging balance sheet.
Working Capital Efficiency Distorted by DPO
DSO has improved from 90 days in 2026Q1 to 77 days in 2026Q2, but DPO turned negative (-3496) in 2026Q2, per financial statements, making the cash conversion cycle uninterpretable.
The negative DPO is likely an artifact of a large deferred revenue or contract liability balance, which may have been reclassified, as deferred revenue dropped to zero in 2026Q2. Excluding this anomaly, the underlying working capital cycle appears manageable, but the extreme volatility in DPO and CCC suggests that the company's cash conversion is not stable. Asset turnover remains low at 0.10, reflecting the capital-intensive nature of the business and the revenue decline.
Leverage Easing but Coverage Remains Thin
Debt-to-equity improved from 0.57 in 2024Q1 to 0.34 in 2026Q2, while interest coverage fell to 4.36x in 2026Q2 from 9.67x in 2025Q3, based on reported data, indicating reduced but still adequate debt service capacity.
The absolute debt level has remained stable around $1.1-1.2B, but equity growth has lowered the D/E ratio. However, interest coverage has deteriorated significantly from 9.67x in 2025Q3 to 4.36x in 2026Q2, reflecting lower operating income. While the current coverage is still above 4x, the trend is concerning, and if revenue continues to decline, coverage could approach levels seen in 2026Q1 (1.43x), which would signal heightened refinancing risk.
Liquidity Cushion Adequate but Shrinking
Current ratio improved to 1.55 in 2026Q2 from 1.48 in 2026Q1, but cash declined from $662.7M in 2025Q3 to $541.2M in 2026Q2, per balance sheet data, indicating a modest buffer.
The current ratio of 1.55 is above 1, suggesting that current assets cover current liabilities, but the quick ratio is identical, implying that inventory is not a significant component. The decline in cash reserves, coupled with negative free cash flow in 2026Q2 (-$92.4M), suggests that the liquidity position could weaken if the revenue downturn persists. However, the company has no near-term debt maturities indicated, so the risk appears manageable in the near term.
Misapplied EV/EBITDA in Cyclical Downturn
EV/EBITDA of 10.14x appears reasonable, but EBITDA is depressed due to the cyclical downturn, making the multiple misleadingly high relative to mid-cycle earnings, as per reported figures.
The most commonly misapplied ratio for Valaris is EV/EBITDA, because EBITDA is currently at a cyclical low, inflating the multiple. For example, forward EV/EBITDA is 19.21x, which suggests the market expects a significant recovery, but if the downturn persists, the multiple could expand further. Instead, investors should use a mid-cycle EV/EBITDA or EV/EBITDAX, adjusting for the cyclicality of the offshore drilling industry. Additionally, the negative COGS in 2026Q2 distorts EBITDA, so a normalized EBITDA based on average margins over the cycle would provide a more accurate valuation metric.