2 models fit Borr Drilling Limited Common Shares and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
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Valued as a cyclical company: Discounted cash flow and Graham number.
ACCE opinionBorr Drilling Limited Common Shares (BORR)
Fair value (2 models)
$3.46
ACCE price target
$4.50
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $3.35 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $4.40 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
27.1% above
-21.4% to fair value
ACCE score
42
out of 100
Analysts
57% buy
7 covering
1-year return
+42.9%
Dividend yield
0.00%
Borr Drilling Limited Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Borr Drilling owns and operates a fleet of jackup rigs, self-elevating drilling units used mainly for offshore oil and gas wells in shallow water, and it contracts them to national oil companies and independent operators. The structural case rests on the jackup segment being one of the more capital-efficient ways to drill offshore, with a fleet that has been upgraded and a contract book that has been rebuilt after the downturn. The near-term driver is whether new day-rate contracts roll onto a fleet that is largely idle or under-earning, since each rig returned to work moves the top line much more than the margin figures suggest. The reason to look now is the disconnect in the numbers: revenue fell 13.2% and return on equity is -24.7%, yet the stock trades on a forward P/E of 28.2 and a 43.7% gross margin, which means the market is pricing a recovery in earnings rather than the current trailing picture. Operating margin is only 0.1%, so the thesis hinges on utilization and day rates lifting that line, and a deeper look should focus on contract coverage and debt service over the next two years.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue and score falling
Revenue is down 13.2% year on year and 6.4% quarter on quarter, and the ACCE score fell from 64 to 44 over 90 days. Growth is contracting, not just slowing.
high
Leverage and negative returns
Debt to equity is 1.76 with ROE at -24.7% and net margin at -24.0%. The company is loss-making on a net basis despite $127M of free cash flow.
moderate
Heavy short interest
Short interest stands at 14.5% of shares outstanding, which points to meaningful bearish positioning and potential volatility around results.
moderate
Price above model fair value
The price trades 27.1% above the model fair value of $3.46, while sitting 2.2% below the ACCE price target of $4.50. The valuation case is mixed.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last 12 months reached $127M, a sign the business still generates real cash despite losses.
Revenue grew at an average of +27.1% a year over five years, showing a longer track record of expansion than the latest quarter suggests.
Why it could disappoint
Revenue fell -13.2% year over year, and the company lost money with a net margin of -24.0%.
Debt is 1.76 times equity, and return on invested capital of 1.1% is low for a business carrying that much borrowing.
The shares trade 27.1% above the model fair value of $3.46, and the latest earnings missed by -100.0%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where BORR's valuation models land
Price
$4.40
Model fair value
$3.46
Model range
$2.79 to $3.80
Fair value $3.46
Price $4.40
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
Graham number
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Quality
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