Intrinsic value of SeaDrill - SDRL

Previous Close

$0.29

  Intrinsic Value

$4.55

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+31%

Previous close

$0.29

 
Intrinsic value

$4.55

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+31%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SDRL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -26.90
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  3,169
  3,232
  3,307
  3,392
  3,487
  3,593
  3,709
  3,835
  3,972
  4,119
  4,277
  4,446
  4,627
  4,819
  5,023
  5,240
  5,469
  5,713
  5,970
  6,241
  6,528
  6,831
  7,150
  7,486
  7,840
  8,214
  8,607
  9,020
  9,456
  9,914
  10,395
Variable operating expenses, $m
 
  3,426
  3,505
  3,595
  3,696
  3,808
  3,931
  4,065
  4,210
  4,366
  4,534
  4,713
  4,904
  5,108
  5,325
  5,554
  5,798
  6,055
  6,328
  6,616
  6,920
  7,240
  7,579
  7,935
  8,311
  8,706
  9,123
  9,562
  10,023
  10,508
  11,019
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,991
  3,426
  3,505
  3,595
  3,696
  3,808
  3,931
  4,065
  4,210
  4,366
  4,534
  4,713
  4,904
  5,108
  5,325
  5,554
  5,798
  6,055
  6,328
  6,616
  6,920
  7,240
  7,579
  7,935
  8,311
  8,706
  9,123
  9,562
  10,023
  10,508
  11,019
Operating income, $m
  178
  -194
  -198
  -204
  -209
  -216
  -223
  -230
  -238
  -247
  -257
  -267
  -278
  -289
  -301
  -314
  -328
  -343
  -358
  -374
  -392
  -410
  -429
  -449
  -470
  -493
  -516
  -541
  -567
  -595
  -624
EBITDA, $m
  988
  631
  646
  663
  681
  702
  725
  749
  776
  805
  836
  869
  904
  941
  981
  1,024
  1,069
  1,116
  1,166
  1,219
  1,275
  1,334
  1,397
  1,462
  1,532
  1,605
  1,681
  1,762
  1,847
  1,937
  2,031
Interest expense (income), $m
  400
  321
  329
  338
  349
  361
  375
  390
  406
  423
  442
  462
  484
  507
  532
  558
  585
  615
  646
  679
  713
  750
  789
  829
  872
  918
  965
  1,016
  1,068
  1,124
  1,183
Earnings before tax, $m
  44
  -515
  -527
  -542
  -558
  -577
  -597
  -620
  -644
  -670
  -699
  -729
  -762
  -796
  -833
  -872
  -914
  -957
  -1,004
  -1,053
  -1,105
  -1,160
  -1,218
  -1,279
  -1,343
  -1,411
  -1,482
  -1,557
  -1,636
  -1,719
  -1,806
Tax expense, $m
  199
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -181
  -515
  -527
  -542
  -558
  -577
  -597
  -620
  -644
  -670
  -699
  -729
  -762
  -796
  -833
  -872
  -914
  -957
  -1,004
  -1,053
  -1,105
  -1,160
  -1,218
  -1,279
  -1,343
  -1,411
  -1,482
  -1,557
  -1,636
  -1,719
  -1,806

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,478
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  21,666
  20,588
  21,062
  21,603
  22,211
  22,884
  23,623
  24,428
  25,299
  26,237
  27,244
  28,321
  29,470
  30,694
  31,995
  33,375
  34,837
  36,386
  38,023
  39,753
  41,579
  43,507
  45,539
  47,682
  49,939
  52,316
  54,820
  57,454
  60,227
  63,144
  66,212
Adjusted assets (=assets-cash), $m
  20,188
  20,588
  21,062
  21,603
  22,211
  22,884
  23,623
  24,428
  25,299
  26,237
  27,244
  28,321
  29,470
  30,694
  31,995
  33,375
  34,837
  36,386
  38,023
  39,753
  41,579
  43,507
  45,539
  47,682
  49,939
  52,316
  54,820
  57,454
  60,227
  63,144
  66,212
Revenue / Adjusted assets
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
  0.157
Average production assets, $m
  14,647
  14,940
  15,284
  15,676
  16,117
  16,606
  17,142
  17,726
  18,358
  19,039
  19,769
  20,551
  21,385
  22,273
  23,217
  24,219
  25,280
  26,403
  27,591
  28,847
  30,172
  31,571
  33,046
  34,600
  36,238
  37,964
  39,780
  41,692
  43,704
  45,820
  48,047
Working capital, $m
  -1,837
  -39
  -40
  -41
  -42
  -43
  -45
  -46
  -48
  -49
  -51
  -53
  -56
  -58
  -60
  -63
  -66
  -69
  -72
  -75
  -78
  -82
  -86
  -90
  -94
  -99
  -103
  -108
  -113
  -119
  -125
Total debt, $m
  9,927
  8,653
  8,903
  9,189
  9,509
  9,865
  10,255
  10,680
  11,140
  11,635
  12,167
  12,735
  13,342
  13,988
  14,675
  15,404
  16,176
  16,994
  17,858
  18,772
  19,736
  20,754
  21,827
  22,958
  24,150
  25,405
  26,727
  28,118
  29,582
  31,122
  32,742
Total liabilities, $m
  12,145
  10,871
  11,121
  11,407
  11,727
  12,083
  12,473
  12,898
  13,358
  13,853
  14,385
  14,953
  15,560
  16,206
  16,893
  17,622
  18,394
  19,212
  20,076
  20,990
  21,954
  22,972
  24,045
  25,176
  26,368
  27,623
  28,945
  30,336
  31,800
  33,340
  34,960
Total equity, $m
  9,521
  9,718
  9,941
  10,197
  10,484
  10,801
  11,150
  11,530
  11,941
  12,384
  12,859
  13,367
  13,910
  14,488
  15,102
  15,753
  16,443
  17,174
  17,947
  18,763
  19,625
  20,535
  21,495
  22,506
  23,571
  24,693
  25,875
  27,118
  28,427
  29,804
  31,252
Total liabilities and equity, $m
  21,666
  20,589
  21,062
  21,604
  22,211
  22,884
  23,623
  24,428
  25,299
  26,237
  27,244
  28,320
  29,470
  30,694
  31,995
  33,375
  34,837
  36,386
  38,023
  39,753
  41,579
  43,507
  45,540
  47,682
  49,939
  52,316
  54,820
  57,454
  60,227
  63,144
  66,212
Debt-to-equity ratio
  1.043
  0.890
  0.900
  0.900
  0.910
  0.910
  0.920
  0.930
  0.930
  0.940
  0.950
  0.950
  0.960
  0.970
  0.970
  0.980
  0.980
  0.990
  1.000
  1.000
  1.010
  1.010
  1.020
  1.020
  1.020
  1.030
  1.030
  1.040
  1.040
  1.040
  1.050
Adjusted equity ratio
  0.403
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -181
  -515
  -527
  -542
  -558
  -577
  -597
  -620
  -644
  -670
  -699
  -729
  -762
  -796
  -833
  -872
  -914
  -957
  -1,004
  -1,053
  -1,105
  -1,160
  -1,218
  -1,279
  -1,343
  -1,411
  -1,482
  -1,557
  -1,636
  -1,719
  -1,806
Depreciation, amort., depletion, $m
  810
  825
  844
  866
  890
  917
  947
  979
  1,014
  1,052
  1,092
  1,135
  1,182
  1,231
  1,283
  1,338
  1,397
  1,459
  1,524
  1,594
  1,667
  1,744
  1,826
  1,912
  2,002
  2,097
  2,198
  2,303
  2,415
  2,532
  2,655
Funds from operations, $m
  1,176
  310
  317
  324
  332
  341
  350
  360
  370
  381
  393
  406
  420
  434
  450
  466
  483
  501
  520
  541
  562
  584
  608
  633
  659
  687
  716
  747
  779
  813
  848
Change in working capital, $m
  -8
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -6
Cash from operations, $m
  1,184
  311
  318
  325
  333
  342
  351
  361
  372
  383
  395
  408
  422
  437
  452
  469
  486
  504
  524
  544
  565
  588
  612
  637
  664
  691
  721
  752
  784
  818
  854
Maintenance CAPEX, $m
  0
  -809
  -825
  -844
  -866
  -890
  -917
  -947
  -979
  -1,014
  -1,052
  -1,092
  -1,135
  -1,182
  -1,231
  -1,283
  -1,338
  -1,397
  -1,459
  -1,524
  -1,594
  -1,667
  -1,744
  -1,826
  -1,912
  -2,002
  -2,097
  -2,198
  -2,303
  -2,415
  -2,532
New CAPEX, $m
  -136
  -294
  -344
  -393
  -441
  -489
  -536
  -584
  -632
  -681
  -731
  -782
  -834
  -888
  -944
  -1,002
  -1,061
  -1,123
  -1,188
  -1,255
  -1,325
  -1,399
  -1,475
  -1,555
  -1,638
  -1,725
  -1,816
  -1,912
  -2,012
  -2,117
  -2,226
Cash from investing activities, $m
  328
  -1,103
  -1,169
  -1,237
  -1,307
  -1,379
  -1,453
  -1,531
  -1,611
  -1,695
  -1,783
  -1,874
  -1,969
  -2,070
  -2,175
  -2,285
  -2,399
  -2,520
  -2,647
  -2,779
  -2,919
  -3,066
  -3,219
  -3,381
  -3,550
  -3,727
  -3,913
  -4,110
  -4,315
  -4,532
  -4,758
Free cash flow, $m
  1,512
  -792
  -851
  -912
  -974
  -1,037
  -1,103
  -1,170
  -1,240
  -1,312
  -1,387
  -1,466
  -1,547
  -1,633
  -1,722
  -1,816
  -1,913
  -2,016
  -2,123
  -2,236
  -2,354
  -2,477
  -2,607
  -2,743
  -2,886
  -3,036
  -3,193
  -3,358
  -3,531
  -3,713
  -3,904
Issuance/(repayment) of debt, $m
  -1,157
  204
  250
  286
  321
  356
  390
  425
  460
  495
  532
  569
  607
  646
  687
  729
  772
  817
  864
  913
  964
  1,018
  1,073
  1,131
  1,192
  1,255
  1,322
  1,391
  1,464
  1,540
  1,620
Issuance/(repurchase) of shares, $m
  -10
  712
  751
  797
  845
  895
  946
  1,000
  1,055
  1,113
  1,174
  1,238
  1,304
  1,374
  1,447
  1,523
  1,604
  1,688
  1,777
  1,870
  1,967
  2,069
  2,177
  2,290
  2,408
  2,533
  2,663
  2,800
  2,944
  3,096
  3,254
Cash from financing (excl. dividends), $m  
  -1,206
  916
  1,001
  1,083
  1,166
  1,251
  1,336
  1,425
  1,515
  1,608
  1,706
  1,807
  1,911
  2,020
  2,134
  2,252
  2,376
  2,505
  2,641
  2,783
  2,931
  3,087
  3,250
  3,421
  3,600
  3,788
  3,985
  4,191
  4,408
  4,636
  4,874
Total cash flow (excl. dividends), $m
  324
  124
  150
  171
  192
  213
  234
  254
  275
  297
  319
  341
  364
  387
  411
  437
  463
  490
  518
  547
  578
  610
  643
  678
  714
  752
  792
  833
  877
  923
  970
Retained Cash Flow (-), $m
  -68
  -712
  -751
  -797
  -845
  -895
  -946
  -1,000
  -1,055
  -1,113
  -1,174
  -1,238
  -1,304
  -1,374
  -1,447
  -1,523
  -1,604
  -1,688
  -1,777
  -1,870
  -1,967
  -2,069
  -2,177
  -2,290
  -2,408
  -2,533
  -2,663
  -2,800
  -2,944
  -3,096
  -3,254
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -588
  -601
  -626
  -653
  -682
  -712
  -745
  -780
  -817
  -856
  -897
  -940
  -987
  -1,035
  -1,087
  -1,141
  -1,198
  -1,259
  -1,322
  -1,389
  -1,460
  -1,534
  -1,612
  -1,694
  -1,781
  -1,871
  -1,967
  -2,067
  -2,173
  -2,284
Discount rate, %
 
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
 
  -545
  -512
  -487
  -460
  -431
  -400
  -368
  -336
  -302
  -269
  -237
  -206
  -176
  -148
  -123
  -100
  -80
  -63
  -48
  -36
  -27
  -19
  -14
  -9
  -6
  -4
  -2
  -1
  -1
  0
Current shareholders' claim on cash, %
  100
  90.4
  81.4
  73.0
  65.3
  58.2
  51.7
  45.8
  40.5
  35.8
  31.5
  27.7
  24.3
  21.3
  18.6
  16.3
  14.2
  12.4
  10.8
  9.4
  8.2
  7.1
  6.2
  5.4
  4.7
  4.0
  3.5
  3.0
  2.6
  2.3
  2.0

Seadrill Limited is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. The Company's primary business is the ownership and operation of drillships, semi-submersible rigs and jack-up rigs for operations in shallow-, mid-, deep-, and ultra deepwater areas, and in benign and harsh environments. The Company's segments are Floaters and Jack-ups. The Company offers services encompassing drilling, completion and maintenance of offshore exploration and production wells. The Company contracts its drilling units primarily on a dayrate basis to drill wells for its customers. The Company has a fleet of approximately 38 offshore drilling units consisting of over 12 semi-submersible rigs, approximately seven drillships and over 19 jack-up rigs in operation, and contracts for the construction of approximately 13 offshore drilling units. The Company also provides management services to certain unconsolidated companies in which its holds investments.

FINANCIAL RATIOS  of  SeaDrill (SDRL)

Valuation Ratios
P/E Ratio -0.8
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0.1
Price to Free Cash Flow 0.1
Growth Rates
Sales Growth Rate -26.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -85.5%
Cap. Spend. - 3 Yr. Gr. Rate -49.8%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 69.8%
Total Debt to Equity 104.3%
Interest Coverage 1
Management Effectiveness
Return On Assets -7.1%
Ret/ On Assets - 3 Yr. Avg. 3.4%
Return On Total Capital -0.9%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity -1.9%
Return On Equity - 3 Yr. Avg. 12.5%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 66%
Gross Margin - 3 Yr. Avg. 61.5%
EBITDA Margin 39.6%
EBITDA Margin - 3 Yr. Avg. 54.7%
Operating Margin 5.6%
Oper. Margin - 3 Yr. Avg. 14.7%
Pre-Tax Margin 1.4%
Pre-Tax Margin - 3 Yr. Avg. 24.6%
Net Profit Margin -5.7%
Net Profit Margin - 3 Yr. Avg. 19.8%
Effective Tax Rate 452.3%
Eff/ Tax Rate - 3 Yr. Avg. 134.7%
Payout Ratio 0%

SDRL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SDRL stock intrinsic value calculation we used $3169 million for the last fiscal year's total revenue generated by SeaDrill. The default revenue input number comes from 2016 income statement of SeaDrill. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SDRL stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.9%, whose default value for SDRL is calculated based on our internal credit rating of SeaDrill, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of SeaDrill.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SDRL stock the variable cost ratio is equal to 106%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SDRL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.8% for SeaDrill.

Corporate tax rate of 27% is the nominal tax rate for SeaDrill. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SDRL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SDRL are equal to 462.2%.

Life of production assets of 18.1 years is the average useful life of capital assets used in SeaDrill operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SDRL is equal to -1.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9521 million for SeaDrill - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 523.571 million for SeaDrill is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of SeaDrill at the current share price and the inputted number of shares is $0.2 billion.

RELATED COMPANIES Price Int.Val. Rating
RIG Transocean 9.95 9.75  buy
SDLP Seadrill Partn 3.66 44.86  str.buy
PACD Pacific Drilli 0.450 35.02  str.buy
ATW Atwood Oceanic 9.32 10.16  str.buy
RDC Rowan Cos. 13.10 9.98  hold

COMPANY NEWS

▶ Seadrill: What Analysts Estimate for 3Q17 and Beyond   [Oct-13-17 02:28PM  Market Realist]
▶ Is Seadrill LTD a Buy?   [Oct-11-17 06:07AM  Motley Fool]
▶ [$$] Seadrill Delays Hearing on Bankruptcy Cash Motion   [Oct-09-17 02:24PM  The Wall Street Journal]
▶ [$$] Firm Retention Summary: Seadrill Ltd.   [Oct-05-17 09:31AM  The Wall Street Journal]
▶ [$$] Firm Retention Summary: Seadrill Ltd.   [Oct-02-17 02:21PM  The Wall Street Journal]
▶ Why Seadrill Rose the Most among Energy Stocks Last Week   [Sep-25-17 03:45PM  Market Realist]
▶ Last Week on Market Realist: Key Energy Industry Updates   [Sep-19-17 03:06PM  Market Realist]
▶ What Happened in September in the Offshore Drilling Space?   [Sep-18-17 02:43PM  Market Realist]
▶ Seadrill Bankruptcy: Race to the Bottom   [Sep-15-17 06:27PM  GuruFocus.com]
▶ Seadrill Filed for Bankruptcy on September 12   [Sep-14-17 11:36AM  Market Realist]
▶ Company News For Sep 14, 2017   [10:37AM  Zacks]
▶ Seadrill Stock Rose 20% despite Bankruptcy   [09:56AM  Market Realist]
▶ ETFs with exposure to Seadrill Ltd. : September 14, 2017   [Sep-13-17 08:26PM  Capital Cube]
▶ [$$] Seadrill Sets a Fast Pace for Bankruptcy Turnaround   [07:41PM  The Wall Street Journal]
▶ Seadrill files for Chapter 11 bankruptcy   [Sep-12-17 08:29PM  Reuters]
▶ Energy Stocks: Biggest Losers on September 48   [Sep-11-17 01:30PM  Market Realist]
▶ Seadrill Stock Rose 43% Last Week   [02:35PM  Market Realist]
▶ Key Coverage Updates from the Energy Sector Last Week   [Sep-05-17 02:06PM  Market Realist]
▶ Energy Stocks: Top 5 Gainers Last Week   [12:22PM  Market Realist]
▶ What Are Seadrills Restructuring Plans?   [Sep-04-17 10:36AM  Market Realist]
▶ Seadrills 2Q17 Costs Up and EBITDA Down   [09:07AM  Market Realist]
▶ What to Expect from Seadrills 3Q17 Revenue   [10:38AM  Market Realist]
▶ Energy Stocks: Last Weeks Top Losers   [Aug-28-17 03:03PM  Market Realist]
▶ Today's Top Supply Chain and Logistics News From WSJ   [Aug-25-17 06:02AM  The Wall Street Journal]
▶ Seadrill reports 2Q loss   [Aug-24-17 09:58PM  Associated Press]
▶ [$$] SeaDrill: into the deep   [12:03PM  Financial Times]
▶ What Wall Street Analysts Expect for Seadrills 2Q17 Earnings   [Aug-18-17 03:06PM  Market Realist]
▶ [$$] Seadrill Warns Creditors of Big Losses   [11:20AM  The Wall Street Journal]
▶ SDRL - Amendment to Secured Credit Facility   [Aug-15-17 01:32AM  GlobeNewswire]
▶ Why Seadrill Partners LLC Dropped Almost 15% in July   [Aug-09-17 04:59PM  Motley Fool]
▶ Which Offshore Driller Had the Worst Return This Year?   [Aug-07-17 10:49AM  Market Realist]
▶ This Could Be The Biggest Winner Of The Oil Price Rebound   [Aug-01-17 07:30PM  Oilprice.com]
▶ Drilling into Enscos 2Q17 Results   [10:34AM  Market Realist]
Financial statements of SDRL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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