Borr Drilling Ltd (BORR) is undervalued and Valaris Ltd (VAL) is undervalued.
Against our estimates of intrinsic value, BORR trades at the wider discount: a margin of safety of +45%, against +30% for VAL.
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 9.3% (average of 3 methods) values the shares at $118.93; the price of $82.72 is 30% below that value, and 75% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | BORR | VAL |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $4.46 | $82.72 |
| Intrinsic value | $8.14 | $118.93 |
| Margin of safety | +45% | +30% |
| Leak Score | 56/100 (2/12) | 100/100 (3/12) |
| Market cap | $1.4B | $5.7B |
| Revenue growth, 5 years | 27.1% | 10.7% |
| Operating margin | 20.8% | 12.1% |
| Net margin | -23.7% | 44.0% |
| Return on equity | -24.4% | 33.9% |
| Debt to equity | 2.58 | 0.36 |
| P/E | — | 6.2x |
| Forward P/E | 38.2x | 11.8x |
| P/B | 1.4x | 1.8x |