Noble Corp plc (NE)

Drilling Oil & Gas Wells

Latest Price

$46.55

TTM P/E

50.05

Normalized P/E

23.47

Div Yield

2.15%

Book Value

28.13

P/B Ratio

1.65

Valuation metrics

EPS: $1.35

Book value / share: $28.64

Formula: √(22.5 × EPS × BVPS)

Graham Number

$29.49

37% downside

Norm. op. income: $495M (median of 4yr)

Tax rate: 10%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$18.47

60% downside

Base FCF: $136M (median of recent 4yr)

Growth: 25%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$54.11

+16% upside

EPS: $1.35

Target P/E: 23×

Formula: EPS × P/E

P/E Fair Value

$31.05

33% downside