Nabors Industries Ltd (NBR) is undervalued and Valaris Ltd (VAL) is undervalued.
Against our estimates of intrinsic value, NBR trades at the wider discount: a margin of safety of +38%, against +30% for VAL.
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 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 | NBR | VAL |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $83.42 | $82.72 |
| Intrinsic value | $135.52 | $118.93 |
| Margin of safety | +38% | +30% |
| Leak Score | 70/100 (3/12) | 100/100 (3/12) |
| Market cap | $1.3B | $5.7B |
| Revenue growth, 5 years | 8.3% | 10.7% |
| Operating margin | 7.9% | 12.1% |
| Net margin | 6.5% | 44.0% |
| Return on equity | 49.2% | 33.9% |
| Debt to equity | 3.91 | 0.36 |
| P/E | 6.2x | 6.2x |
| Forward P/E | 20.6x | 11.8x |
| P/B | 2.3x | 1.8x |