Nabors Industries Ltd (NBR) is undervalued and Seadrill Ltd (SDRL) is overvalued.
Against our estimates of intrinsic value, NBR trades at the wider discount: a margin of safety of +38%, against -389% for SDRL.
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 10.8% (average of 3 methods) values the shares at $9.58; the price of $46.85 is 389% above that value, and 70% of that value comes from beyond year five.
Leak Score 0/100 on 3 of 12 signals
| Metric | NBR | SDRL |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $83.42 | $46.85 |
| Intrinsic value | $135.52 | $9.58 |
| Margin of safety | +38% | -389% |
| Leak Score | 70/100 (3/12) | 0/100 (3/12) |
| Market cap | $1.3B | $2.9B |
| Revenue growth, 5 years | 8.3% | 6.3% |
| Operating margin | 7.9% | 9.3% |
| Net margin | 6.5% | 0.1% |
| Return on equity | 49.2% | 0.0% |
| Debt to equity | 3.91 | 0.26 |
| P/E | 6.2x | 2739.8x |
| Forward P/E | 20.6x | 13.3x |
| P/B | 2.3x | 1.0x |