Transocean Valuation
| RIG Stock | USD 5.94 0.13 2.24% |
At this time, the company appears to be undervalued. Transocean has a current Real Value of $7.15 per share. The regular price of the company is $5.94. Our model measures the value of Transocean from inspecting the company fundamentals such as Shares Outstanding of 819.58 M, operating margin of (0.06) %, and Return On Equity of -0.09 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Transocean's valuation include:
Price Book 0.4863 | Enterprise Value 11.7 B | Enterprise Value Ebitda 24.2615 | Price Sales 1.7885 | Enterprise Value Revenue 4.292 |
Undervalued
Today
Please note that Transocean's price fluctuation is somewhat reliable at this time. Calculation of the real value of Transocean is based on 3 months time horizon. Increasing Transocean's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Transocean is useful when determining the fair value of the Transocean stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Transocean. Since Transocean is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Transocean Stock. However, Transocean's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 5.94 | Real 7.15 | Target 8.85 | Hype 5.81 |
The real value of Transocean Stock, also known as its intrinsic value, is the underlying worth of Transocean Company, which is reflected in its stock price. It is based on Transocean's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Transocean's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Transocean's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Transocean helps investors to forecast how Transocean stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Transocean more accurately as focusing exclusively on Transocean's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Transocean's intrinsic value based on its ongoing forecasts of Transocean's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Transocean's closest peers. When choosing an evaluation method for Transocean, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Transocean Investments |
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Transocean Valuation Trend
Knowing Transocean's actual value is paramount for traders to make sound investment determinations. Transocean's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Transocean's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Transocean's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Transocean Market Cap
Transocean is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Energy industry is at this time estimated at about 25.19 Billion. Transocean retains roughly 4.76 Billion in market capitalization claiming about 19% of equities under Energy industry.Transocean Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Transocean's current stock value. Our valuation model uses many indicators to compare Transocean value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Transocean competition to find correlations between indicators driving Transocean's intrinsic value. More Info.Transocean is currently regarded as top stock in price to earning category among related companies. It is rated below average in price to book category among related companies . The current Price To Book Ratio is estimated to decrease to 0.44. Comparative valuation analysis is a catch-all model that can be used if you cannot value Transocean by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Transocean's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Transocean's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Transocean's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Transocean and how it compares across the competition.
About Transocean Valuation
The stock valuation mechanism determines the current worth of Transocean on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Transocean. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Transocean based exclusively on its fundamental and basic technical indicators. By analyzing Transocean's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Transocean's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Transocean. We calculate exposure to Transocean's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Transocean's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 102 M | 96.9 M | |
| Pretax Profit Margin | (0.33) | (0.32) | |
| Operating Profit Margin | (0.03) | (0.03) | |
| Net Loss | (0.34) | (0.32) | |
| Gross Profit Margin | 0.04 | 0.03 |
8 Steps to conduct Transocean's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Transocean's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Transocean's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Transocean's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Transocean's revenue streams: Identify Transocean's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Transocean's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Transocean's growth potential: Evaluate Transocean's management, business model, and growth potential.
- Determine Transocean's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Transocean's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Transocean Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Transocean does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 768 M |
Transocean Current Valuation Indicators
Valuation refers to the process of determining the present value of Transocean and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Transocean we look at many different elements of the entity such as Transocean's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Transocean's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Transocean's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Transocean, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Transocean's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Transocean's worth.When determining whether Transocean is a strong investment it is important to analyze Transocean's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Transocean's future performance. For an informed investment choice regarding Transocean Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Transocean. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in Transocean Stock please use our How to Invest in Transocean guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Transocean Stock analysis
When running Transocean's price analysis, check to measure Transocean's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Transocean is operating at the current time. Most of Transocean's value examination focuses on studying past and present price action to predict the probability of Transocean's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Transocean's price. Additionally, you may evaluate how the addition of Transocean to your portfolios can decrease your overall portfolio volatility.
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Is Transocean's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Transocean. If investors know Transocean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Transocean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.24) | Revenue Per Share 3.688 | Quarterly Revenue Growth 0.223 | Return On Assets (0) | Return On Equity (0.09) |
The market value of Transocean is measured differently than its book value, which is the value of Transocean that is recorded on the company's balance sheet. Investors also form their own opinion of Transocean's value that differs from its market value or its book value, called intrinsic value, which is Transocean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Transocean's market value can be influenced by many factors that don't directly affect Transocean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Transocean's value and its price as these two are different measures arrived at by different means. Investors typically determine if Transocean is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Transocean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.