Invesaro

Stocks VAL DCF valuation

DCF valuation

What is Valaris Ltd worth?

With the base-case assumptions below, a discounted cash flow model on Valaris Ltd's reported free cash flow gives $37.14 per share. The share price was $79.29 on November 10, 2026, 114% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$202.7M
Average free cash flow, last 5 years
-$150.2M
Cash
$525.1M
balance sheet of September 30, 2026
Debt
$1.09B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
70,900,000
Revenue growth per year, last 6 years
2.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-2.5%-0.5%2.0%10.0%$20.08-75%
Base2.5%2.5%2.5%9.0%$37.14-53%
Bull7.5%5.5%3.0%8.0%$70.36-11%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$49.13$52.75$57.17$62.70$69.81
8.0%$40.21$42.56$45.33$48.66$52.73
9.0%$33.68$35.29$37.14$39.30$41.85
10.0%$28.69$29.83$31.13$32.60$34.31
11.0%$24.76$25.59$26.53$27.58$28.77

Where the presets come from

Base: years 1 to 5 grow at Valaris Ltd's revenue growth rate over the last 6 fiscal years (2.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Valaris Ltd company page