* Note: Prices are in Million (M) USD.
Description:
Borr Drilling Limited is a leading offshore drilling contractor based in Hamilton, Bermuda, specializing in delivering high-quality drilling services to the global oil and gas industry. With a modern fleet of jack-up rigs and a commitment to operational excellence, Borr Drilling positions itself as a key player in the evolving energy landscape. The company focuses on maximizing efficiency and safety while providing innovative solutions tailored to meet the demands of its clients. As of October 2023, Borr Drilling continues to capitalize on strategic opportunities in the offshore sector, supported by a strong management team and robust industry partnerships.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $92 M
Debt : $2,052 M
EBITDA : $453 M
Net Debt (Debt - Cash): $1,959 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Energy
Industry: Oil & gas drilling
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.19
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 9 overlapping fiscal years (max 20).Average Free Cash Flow: $-297 M
Average Revenue: $364 M
Revenue Converted To Free Cash Flow (%): -81.5%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,011 M
Revenue 5 Years Ago (2019-12-31): $334 M
Total Growth over 5 Years: 202.5%
5-Year Revenue CAGR (Historical): 24.8%
Forward 5-Year CAGR (Tapered): 17.3%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $254 M
Share Count 5 Years Ago (2020-12-31): $75 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.19
Average Earnings Per Share (EPS): $0.19
Dividend Per Share (DPS): $0
Payout Ratio: 21%
Dividend Yield: 8%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $0.00
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 9 valid ROE years (max 20).Average ROE: -12.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $2.86
52-Week Low: $1.55
Threshold Price (15% Above 52-Week Low): $1.78
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $839 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 19 points to above Borr Drilling Ltd (BORR) stock.
Last 2 Years Avg PE
15.33, Fair Value PE
12, Industry Based PE
15, Growth Based PE
17.35, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 5 values, average assigned is
15.58. Value-Trades has assined P/E value
15.56. An average (Current Year EPS + Next Year EPS) earning per share is
$0.1883.
Fair value using multiple P/Es (blended): $2.93 (PE 15.58 × EPS $0.19)
So the Final Fair Value is: $2.93
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.19
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 12.47 | $2.35 |
| 2 Yrs Avg-PE | 15.33 | $2.89 |
| Value-Trades Assigned | 15.56 | $2.93 |
Note: Only 2 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
