$92.06
-1.6%Valaris Limited provides offshore contract drilling services to the international oil and gas industry. The company owns an offshore drilling rig fleet of 56 rigs, which include 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. It serves international, government-owned, and independent oil and gas companies in the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.1B | $2.2B | $4.4B | $8.7B | $17.5B | $35.0B | $69.9B | $139.8B | $279.7B | $559.3B |
| Maintenance CapEx | -$137.4M | -$274.8M | -$549.6M | -$1.1B | -$2.2B | -$4.4B | -$8.8B | -$17.6B | -$35.2B | -$70.3B |
| Owner Earnings | $955.0M | $1.9B | $3.8B | $7.6B | $15.3B | $30.6B | $61.1B | $122.2B | $244.5B | $489.0B |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $884.3M | $1.6B | $3.0B | $5.6B | $10.4B | $19.3B | $35.7B | $66.0B | $122.3B | $226.5B |
Snapshot
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Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.