ValarisVAL +1.44%56 EV-to-EBITDA is 8.66 as of Jul. 07, 2026, which is 15% below its 10-year median of 10.16. GuruFocus rates VAL with a GF Score™ of 56/100 and a GF Value™ of $78.39 (Fairly Valued). The stock has 4 warning signs investors should review. Among 756 Oil & Gas companies, Valaris ranks worse than 57.41% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Valaris's enterprise value is $5,742 Mil.
Valaris's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $663 Mil. Therefore, Valaris's EV-to-EBITDA for today is 8.66.
The historical rank and industry rank for Valaris's EV-to-EBITDA or its related term are showing as below:
VAL'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -5.28 Med: 10.16 Max: 665.14
Current: 8.66
During the past 7 years, the highest EV-to-EBITDA of Valaris was 665.14. The lowest was -5.28. And the median was 10.16.
VAL's EV-to-EBITDA is ranked worse than 57.41% of 756
companies
in the Oil & Gas industry
Industry Median: 7.28
vs VAL: 8.66
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Valaris (NYSE:VAL) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Valaris's share price for today is $74.59.
Valaris's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.280.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Valaris's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Drilling subindustry, Valaris's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Valaris EV-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Valaris's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Valaris's EV-to-EBITDA falls into.
Valaris's current Enterprise Value is $5,742 Mil.
Valaris's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $663 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Valaris (VAL) has a EV-to-EBITDA of 8.66 as of Jul. 07, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Valaris. This is 15% below median its historical median of 10.16. According to the industry distribution chart, Valaris ranks #434 out of 756 companies in the Oil & Gas industry, placing it in the top 57.4%.
Is Valaris' EV-to-EBITDA too high?
Valaris' current EV-to-EBITDA of 8.66 is 15% below median its 10-year median of 10.16. The Oil & Gas industry median EV-to-EBITDA is 7.28. Valaris' value of 8.66 is 19% above this industry median. Based on the distribution chart, Valaris ranks #434 out of 756 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Valaris has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valaris' EV-to-EBITDA compare to RIG and NE?
According to the Oil & Gas industry distribution chart, Valaris ranks #434 out of 756 companies for EV-to-EBITDA. This places Valaris in the lower half of its industry. The industry median EV-to-EBITDA is 7.28. Valaris' value of 8.66 is 19% above this benchmark. While the company's 10-year median is 10.16 vs. the industry median of 7.28, Valaris has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for an Oil & Gas company?
The median EV-to-EBITDA among Oil & Gas companies is 7.28, based on 756 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Valaris's current EV-to-EBITDA of 8.66 is 19% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Valaris. For the Oil & Gas industry, the median EV-to-EBITDA is 7.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valaris's current EV-to-EBITDA is 8.66, which is 15% below median its own 10-year median of 10.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valaris stock overvalued right now?
Based on GuruFocus' analysis, Valaris (VAL) is currently considered Fairly Valued. The stock's GF Value™ is $78.39, compared to a current price of $74.59 — trading 4.8% below its estimated fair value. The current EV-to-EBITDA is 8.66, which is 15% below median its 10-year median of 10.16 and 19% above the Oil & Gas industry median of 7.28. Valaris' overall GF Score™ is 56/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Valaris (VAL), the current EV-to-EBITDA is 8.66 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Valaris (VAL) Overvalued in 2026?
Based on GuruFocus' analysis, Valaris stock appears to be undervalued.
The current stock price of $74.59 is trading 4.8% below its estimated GF Value™ of $78.39.
GuruFocus considers Valaris to be Fairly Valued.
Key valuation signals for VAL:
EV-to-EBITDA: 8.66 (15% below median its 10-year median of 10.16)
GF Value™: $78.39 vs. price of $74.59 (4.8% below fair value)
Industry Position: 19% above the Oil & Gas median (#434 of 756)
No single metric tells the full story. See the VAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valaris Ltd is an offshore contract drilling company. The company provides offshore contract drilling services to the international oil and gas industry with operations in almost every offshore market across six continents. Its business consists of four operating segments: Floaters, which includes drillships and semisubmersible rigs; Jackups; ARO; and Other, which consists of management services on rigs owned by third parties. It generates the majority of its revenue from the Floaters segment.
56GF Score
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