ValarisVAL +1.62%56 EV-to-OCF is 12.78 as of Jul. 12, 2026, which is 15% below its 10-year median of 15.02. GuruFocus rates VAL with a GF Score™ of 56/100 and a GF Value™ of $78.37 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,013 Oil & Gas companies, Valaris ranks worse than 77.59% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Valaris's Enterprise Value is $5,949 Mil.
Valaris's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was $465 Mil. Therefore, Valaris's EV-to-OCF for today is 12.78.
The historical rank and industry rank for Valaris's EV-to-OCF or its related term are showing as below:
VAL'
s EV-to-OCF Range Over the Past 10 Years
Min: -182.44 Med: 15.02 Max: 5736.88
Current: 12.78
During the past 7 years, the highest EV-to-OCF of Valaris was 5736.88. The lowest was -182.44. And the median was 15.02.
VAL's EV-to-OCF is ranked worse than 77.59% of 1013
companies
in the Oil & Gas industry
Industry Median: 5.71
vs VAL: 12.78
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $77.57.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Valaris EV-to-OCF Related Terms
Valaris EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Valaris's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Valaris's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Valaris's EV-to-OCF falls into.
Valaris's current Enterprise Value is $5,949 Mil.
Valaris's Cash Flow from Operations 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 $465 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-OCF of 12.78 as of Jul. 12, 2026. This is 15% below median its historical median of 15.02. According to the industry distribution chart, Valaris ranks #786 out of 1013 companies in the Oil & Gas industry, placing it in the top 77.6%.
Is Valaris' EV-to-OCF too high?
Valaris' current EV-to-OCF of 12.78 is 15% below median its 10-year median of 15.02. The Oil & Gas industry median EV-to-OCF is 5.71. Valaris' value of 12.78 is 123.8% above this industry median. Based on the distribution chart, Valaris ranks #786 out of 1013 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. 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-OCF compare to RIG and NE?
According to the Oil & Gas industry distribution chart, Valaris ranks #786 out of 1013 companies for EV-to-OCF. This places Valaris in the lower half of its industry. The industry median EV-to-OCF is 5.71. Valaris' value of 12.78 is 123.8% above this benchmark. While the company's 10-year median is 15.02 vs. the industry median of 5.71, 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-OCF for an Oil & Gas company?
The median EV-to-OCF among Oil & Gas companies is 5.71, based on 1,013 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Valaris's current EV-to-OCF of 12.78 is 123.8% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median EV-to-OCF is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valaris's current EV-to-OCF is 12.78, which is 15% below median its own 10-year median of 15.02. 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 $78.37, compared to a current price of $77.57 — trading 1% below its estimated fair value. The current EV-to-OCF is 12.78, which is 15% below median its 10-year median of 15.02 and 123.8% above the Oil & Gas industry median of 5.71. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Valaris (VAL), the current EV-to-OCF is 12.78 as of Jul. 12, 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 $77.57 is trading 1% below its estimated GF Value™ of $78.37.
GuruFocus considers Valaris to be Fairly Valued.
Key valuation signals for VAL:
EV-to-OCF: 12.78 (15% below median its 10-year median of 15.02)
GF Value™: $78.37 vs. price of $77.57 (1% below fair value)
Industry Position: 123.8% above the Oil & Gas median (#786 of 1013)
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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