Valaris Limited (VAL) AI Stock Analysis

Valaris Limited provides offshore contract drilling services to the global oil and gas sector. The company operates a fleet of 56 offshore drilling rigs, which includes 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. Its clientele comprises international oil majors, government-owned entities, and independent exploration and production companies. Valaris operates across key global regions, including the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. Established in 2009 and headquartered in Hamilton, Bermuda, the company employs 3,800 people.

Valaris grew revenue from $1.23B in FY2021 to $2.37B in FY2025, recording a 5-year revenue CAGR of 10.7% from FY2020 to FY2025. Over this span, gross margin increased from 13.3% in FY2021 to 25.0% in FY2025, while operating margin expanded from -72.8% to 20.9%. Net income shifted from -$4.49B in FY2021 to $982.8M in FY2025, resulting in diluted EPS of $13.99. Over the trailing twelve months, revenue reached $2.14B with a profit margin of 44.0%. In the latest quarter ended June 30, 2026, quarterly revenue fell 12.4% and quarterly earnings fell 55.3% compared to the prior-year quarter.

As of June 30, 2026, Valaris held $541.2M in cash and short-term investments against total debt of $1.17B, leaving net debt at $624.3M. The company reported shareholders' equity of $3.22B, total assets of $5.45B, a debt-to-equity ratio of 0.36, and a current ratio of 1.55. Operating cash flow totaled $546.2M in FY2025. In that same fiscal year, the company directed $343.5M toward capital expenditures, which yielded free cash flow of $202.7M, and spent $100.0M on share buybacks.

VAL trades at a trailing P/E of 6.4x, below the 15.0x median of its US-listed Energy peers, but its forward P/E of 29.1x stands above the peer median of 12.7x. The company has an enterprise value of $6.36B, an EV-to-EBITDA multiple of 10.5x compared to the peer median of 8.0x, and a price-to-sales ratio of 2.8x versus the peer median of 1.8x. Over the past year, VAL gained 77.2%, outpacing the S&P 500 return of 16.8%, and delivered a 5-year return of 139.1% versus 83.0% for the benchmark index.

Wall Street coverage includes 8 Hold ratings and 1 Sell rating, with zero Buy or Strong Buy ratings. The mean price target is $68.29, which sits 20.0% below the last close of $85.32 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $2.19B and EPS of $3.46, representing an EPS decline of 75.2%. For the following fiscal year, 7 analysts project revenue to expand 13.4% to $2.48B and EPS to reach $7.01. Valaris has beaten EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 2, 2026.

This page is an AI-written research summary of Valaris Limited (VAL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: VAL income statement, VAL balance sheet, VAL key metrics, VAL analyst forecast, VAL chart. See the VAL stock overview for the latest quote and news.