3 models fit Seadrill Limited Common Shares and they disagree: 0 of 3 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver62
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionSeadrill Limited Common Shares (SDRL)
Fair value (3 models)
$23.96
ACCE price target
$44.00
Rating
Overvalued
Horizon
12 months
Fair value published on 12 Oct 2026, 00:00 CEST; previously $29.54 since 7 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $52.35 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
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
118.5% above
-54.2% to fair value
ACCE score
68
out of 100
Analysts
78% buy
9 covering
P/E
1745.0x
forward 14.2x
1-year return
+64.0%
Dividend yield
0.00%
Seadrill Limited Common Shares in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Seadrill owns and operates offshore drilling rigs, including drillships and semisubmersibles that it leases to oil majors and national oil companies on multi-year contracts. Its edge is a modern, high-specification fleet in a segment where newbuild supply has been scarce for years, which gives the company pricing power on renewals as older rigs retire. Revenue growth of 19.1% reflects dayrates recovering as contracted backlog rolls onto higher rates, and the near-term catalyst is continued contract renewals and fleet redeployment into deepwater work. The stock trades at a forward P/E of 14.1, far below its trailing P/E of 1,575, which signals depressed trailing earnings from the restructuring period rather than a broken earnings base. With a 16.7% operating margin and zero return on equity still reflecting a recapitalised balance sheet, the investment case depends on whether margins hold as dayrates climb, which is worth testing in the filings.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Free cash flow negative
FCF is -$138.0M while net margin is only +0.1%, so reported earnings are not turning into cash. The +63.1% earnings growth does not yet show up in cash generation.
high
Valuation far above model
The price trades 118.5% above the model fair value of $23.96, and sits 19.0% above the ACCE price target of $44.00. The model gap is wide enough to matter for sizing.
moderate
Trailing P/E distorted
Trailing P/E is 1591.3 against a forward P/E of 14.1, which points to near-zero trailing earnings. Valuation rests on the forward estimate, which is harder to verify.
moderate
Insider selling, no buying
Last 10 disclosed insider transactions show $5.44M in sales and $0.00M in buys. Insider ownership is only 0.6%, so the signal carries limited weight.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-21 · prices to Oct 23, 2026
Why it could do well
Analysts rate the stock Buy or Strong Buy at 78% (7 of 9), and their mean price target sits above the current price.
Latest quarterly earnings beat expectations by 62.1%, with earnings per share of 0.47 against 0.29 expected.
Diluted share count fell 12.5% last fiscal year, so each remaining share now represents a larger slice of the company.
Why it could disappoint
The stock trades 118.5% above the model fair value of $23.96, and all three valuation models sit well below the price.
Free cash flow over the last 12 months was negative at -$138M, and the free cash flow yield is -4.6%.
Return on invested capital is -1.8% and net margin is only 0.1%, so the business is barely turning capital into profit.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where SDRL's valuation models land
Price
$52.35
Model fair value
$23.96
Model range
$13.77 to $36.98
Fair value $23.96
Price $52.35
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores