Borr Drilling Ltd (BORR) is undervalued and Transocean Ltd (RIG) is slightly undervalued.
Against our estimates of intrinsic value, BORR trades at the wider discount: a margin of safety of +45%, against +7% for RIG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 2 methods) values the shares at $8.14; the price of $4.46 is 45% below that value, and 84% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 8.6% (average of 2 methods) values the shares at $5.92; the price of $5.49 is 7% below that value, and 77% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
| Metric | BORR | RIG |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $4.46 | $5.49 |
| Intrinsic value | $8.14 | $5.92 |
| Margin of safety | +45% | +7% |
| Leak Score | 56/100 (2/12) | 0/100 (2/12) |
| Market cap | $1.4B | $6.1B |
| Revenue growth, 5 years | 27.1% | 4.7% |
| Operating margin | 20.8% | 22.6% |
| Net margin | -23.7% | -40.2% |
| Return on equity | -24.4% | -18.7% |
| Debt to equity | 2.58 | 0.61 |
| Forward P/E | 38.2x | 19.8x |
| P/B | 1.4x | 0.7x |