Nabors Industries Ltd (NBR) is undervalued and Transocean Ltd (RIG) is slightly undervalued.
Against our estimates of intrinsic value, NBR trades at the wider discount: a margin of safety of +38%, against +7% for RIG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.8% (average of 3 methods) values the shares at $135.52; the price of $83.42 is 38% below that value, and 84% of that value comes from beyond year five.
Leak Score 70/100 on 3 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 | NBR | RIG |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $83.42 | $5.49 |
| Intrinsic value | $135.52 | $5.92 |
| Margin of safety | +38% | +7% |
| Leak Score | 70/100 (3/12) | 0/100 (2/12) |
| Market cap | $1.3B | $6.1B |
| Revenue growth, 5 years | 8.3% | 4.7% |
| Operating margin | 7.9% | 22.6% |
| Net margin | 6.5% | -40.2% |
| Return on equity | 49.2% | -18.7% |
| Debt to equity | 3.91 | 0.61 |
| P/E | 6.2x | — |
| Forward P/E | 20.6x | 19.8x |
| P/B | 2.3x | 0.7x |