Valaris (VAL) has been drawing attention after recent share price swings, with the stock closing at US$82.72 on 22 September 2026. Investors are weighing that move against its mixed growth metrics.
For context, Valaris has paired a 58.62% year-to-date share price return with a 63.87% total shareholder return over the past year. Meanwhile, the recent 7 day and 30 day share price declines suggest momentum has cooled slightly after a strong multi year run.
Scan beyond Valaris and see how other energy contractors with strong multi year returns and recent pullbacks stack up using our hand picked 29 high quality undervalued stocks .
Valaris now looks like a powerful offshore driller after a sharp recent pullback. The business appears solid. The question is whether that share price still reflects good value today.
Most Popular Narrative: 23% Overvalued
Valaris closed at $82.72, while the most followed narrative points to a fair value near $67. The current quote sits above that assessment and puts extra weight on how durable its drilling backlog and margins really are.
The company's $4.7 billion contract backlog, its highest of the decade, reflects continued success in winning attractive, multi-year contracts for its high-specification fleet, supported by robust global offshore activity and rising demand for deepwater projects. This strong backlog visibility points to increasing future revenue and earnings stability.
See why 30 investors see Valaris as 23% overvalued .
Result: Fair Value of $67.27 (OVERVALUED)
Still, Valaris faces real pressure if offshore demand softens or regulators tighten environmental rules, which could reduce contract wins and weaken its pricing power.
Find out about the key risks to this Valaris narrative .
Another View: SWS DCF Signals Undervaluation
The first narrative pegs Valaris at around $67 per share, implying the $82.72 market price is rich. A different lens tells a very different story. The SWS DCF model estimates a future cash flow value near $330.47 per share, which points to a very large gap versus where the stock trades today.
That contrast matters. A P/E-based view ties valuation more tightly to forecast earnings, which analysts expect to shrink. A cash flow model leans on Valaris turning its $939.6m of net income and strong contract backlog into long run cash generation. The question for you is which set of assumptions feels closer to how this offshore driller will actually behave.
For a closer look at how those long term cash flows are treated and where the estimate comes from, Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Valaris for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 29 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Conflicting views on Valaris can be useful if they push you to interrogate the numbers yourself and move quickly from headline to conclusion. If you want a clear snapshot of what stands out on both sides of the ledger, start with the 2 key rewards and 2 important warning signs .
Ready for more ideas beyond Valaris?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include VAL .
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