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Borr Drilling Limited (BORR) Fair Value & Analysis

Energy · NO · Market cap 13.0B NOK (≈ $1.4B)

What is Borr Drilling Limited really worth?

BD Borr Drilling Limited BORR · OL
Pricekr 42.69
Fair Valuekr 26.64
Upside−37.6%
Quality35/100

Below-average quality, and trading another 60% above our fair value of kr 26.64.

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Strengths

Healthy Growth (revenue 5y +27.1 %/yr)

Risks

!Thin margins · 3.1% net margin
!High debt · generates free cash flow
!Trails peers (5/14)
!Narrow moat 40/100
!Weak on past: 12 out of 100
!Weak on balance sheet: 17 out of 100
!Weak on dividend: 1 out of 100
Evidence: High Range kr 17.40 – kr 29.01

Fair value as of: Aug 30, 2026

From 25 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from kr 27.01 to kr 26.64 (−1.4%) since Aug 13, 2026. Share price +12.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (kr 29.01). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

kr 85.66 kr 7.07 Fair Value kr 26.64 Jun 2020 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range kr 7.07 – kr 85.66 · fair‑value band kr 17.40 – kr 29.01 · the kr 42.69 price screens above the kr 26.64 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

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Analysis

Borr Drilling Limited (BORR) currently trades at kr 42.69, while our model-based Fair Value estimate is kr 26.64, implying the stock looks roughly 60.3% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Energy sector. Bull case: the Growth Earnings group reads highest at a median of kr 5.98 per share, and 0 of the 25 models we run sit above the kr 42.69 price. Bear case: the Economic Profit group reads lowest at kr 2.84, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Borr Drilling Limited generated revenue of 1.1B NOK at a net margin of 3.1%. Revenue grew 14.0% year over year. It earns a return on equity of 3.0%. Net debt stands at 1.8B NOK. Fundamentals as of Aug 30, 2026

Our scenario range runs from kr 17.40 (bear case) to kr 29.01 (bull case); at kr 42.69, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 31% below its 52-week high, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at −50% fair-value upside, at −38%, BORR screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly kr 1.02 per share, which is 3.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (kr 0.2500 to kr 10.84). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income kr 2.91 kr 2.84 kr 2.49 74
EPV kr 3.35 kr 4.80 kr 6.06 73
Owner Earnings kr 2.61 kr 11.94 71
All 25 models by family
DCF Models
FCF DCF kr 1.63 kr 5.62 kr 18.30 66
Owner Earnings kr 2.61 kr 11.94 71
5Y Revenue Exit kr 1.47 kr 6.96 67
5Y EBITDA Exit kr 1.76 kr 7.39 kr 18.43 63
5Y P/E Exit kr 0.2600 kr 3.47 65
10Y Revenue Exit kr 4.55 kr 7.40 62
10Y EBITDA Exit kr 1.86 kr 10.84 kr 26.57 57
10Y P/E Exit kr 2.19 kr 7.07 59
Earnings-Based
Graham-Dodd kr 0.9900 kr 6.91 kr 9.70 61
Lynch FV kr 3.57 kr 5.10 kr 6.63 59
PEG = 1.0 kr 3.57 kr 5.10 kr 6.63 55
EPV kr 3.35 kr 4.80 kr 6.06 73
Dividend Discount
Gordon GGM kr 0.1400 kr 0.2900 kr 0.4600 64
DDM Multi-Stage kr 0.1400 kr 0.2500 kr 0.3100 64
Multiples
P/E Multiple kr 1.53 kr 2.04 kr 2.55 63
P/S Multiple kr 1.86 kr 2.48 kr 3.10 58
P/B Multiple kr 1.86 kr 2.48 kr 3.10 55
EV/EBIT kr 2.50 kr 5.11 kr 7.72 63
EV/EBITDA kr 1.53 kr 3.82 kr 6.10 63
Asset-Based
NCAV (Graham) kr 1.98 kr 2.65 kr 3.96 54
Growth DCF
Growth DCF kr 1.22 kr 7.65 kr 18.20 66
Rev-Margin DCF kr 2.46 kr 9.21 67
Economic Profit
Residual Income kr 2.91 kr 2.84 kr 2.49 74
ROIC Compounder kr 3.35 kr 6.15 kr 9.84 67
Growth Earnings
Growth-Adj P/E kr 4.19 kr 5.98 kr 7.77 65

Widest divergence: Growth Earnings (kr 5.98) versus Dividend Discount (kr 0.2500). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 30.7
P/S ratio 1.35 P/E × margin
EPS (TTM) kr 1.39 price ÷ EPS = P/E 30.7
Dividend yield 0.0% payout 1.0%
Net margin 4.4% FY2025
Return on equity 3.0% TTM
More key figures
Profitability
Return on assets (EBIT) 4.3% avg 5y
Operating margin 18.6% TTM
Growth
Revenue (TTM) 1.1B NOK TTM
Revenue growth (YoY) +14.0% 3y avg +32.0%
Balance sheet & cash flow
Free cash flow 127M NOK FY2025
Net debt 1.8B NOK FY2025 · ≈ 13.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 38 · Market factors (momentum, volatility) 22

Profitability 22
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 40
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 20
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry in the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe.

Full company description

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry in the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe. It owns, contracts, and operates jack-up rigs for operations in shallow-water areas, such as the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Borr Drilling Limited reported revenue of $1.0B in FY2025 versus $245M in FY2021, a compound +42.8%/yr. Reported net income was $45.0M in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.0B NOK
Latest YoY
+1.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+32.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+27.1%
Avg. revenue growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+217.0%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+24.1% (24.1 + 0.0)
Revenue +42.8%/yr
FY21 $245M
FY22 $444M
FY23 $772M
FY24 $1.0B
FY25 $1.0B
Net income
FY21 −$193M
FY22 −$293M
FY23 $22.1M
FY24 $82.1M
FY25 $45.0M

BORR screens 60% overvalued. Compare with Noble Corporation →

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Cite: Fair Value Calculator (2026). "Borr Drilling Limited Fair Value". https://www.fairvalue-calculator.com/stock/BORR

Peer Group

Oil & Gas Drilling · 34 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 35 · Bottom 25%
Fair Value upside −38% · Above median
Return on equity (TTM) 3% · Below median
Return on assets 5% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 19% · Above median
Revenue growth 14% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 1.65× · Higher than 75% of peers

Valuation Multiples vs Oil & Gas Drilling median · lower = cheaper

P/E (TTM) 30.7× · Pricier than 75% of peers
P/B 1.14× · Pricier than median
P/S (TTM) 1.33× · Pricier than median
P/FCF 10.9× · Pricier than median
EV/EBITDA 6.6× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE70 · sector 0
PAST12 · sector 20
HEALTH17 · sector 81
DIVIDEND1 · sector 29

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

Similar stocks

10 more Oil & Gas Drilling stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Noble Corporation NE $45.76 $23.09 −50%
Sinopec Oilfield Service Corporation 600871 ¥2.22 ¥0.4900 −78%
Transocean Ltd RIG $5.70 $2.16 −62%
Valaris Limited VAL $85.21 $58.91 −31%
Patterson-UTI Energy, Inc PTEN $12.13 $12.20 +1%
Helmerich & Payne, Inc HP $42.55 $9.25 −78%
Seadrill Limited SDRL $46.72 $10.17 −78%
Odfjell Drilling Ltd ODL kr 95.30 kr 53.75 −44%
Arabian Drilling Company 2381 88.90 SAR 11.09 SAR −88%
Nabors Industries Ltd NBR $91.71 $209.14 +128%

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Frequently asked questions

Is Borr Drilling Limited (BORR) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of kr 26.64 versus a price of kr 42.69, about −38% upside (overvalued).
What is the fair value of BORR?
Our model-based fair value for Borr Drilling Limited is kr 26.64 (as of Aug 30, 2026), built from audited fundamentals. The current price: kr 42.69.
What is the quality score of BORR?
Borr Drilling Limited has a Quality Score of 35/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Borr Drilling Limited (BORR)?
Borr Drilling Limited reported trailing-twelve-month revenue of about 1.1B NOK (latest available figure, as of Aug 30, 2026).
What is the net profit margin of BORR?
The net profit margin of Borr Drilling Limited is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does Borr Drilling Limited pay a dividend?
Borr Drilling Limited currently shows a dividend yield of about 0.03% relative to its recent price (as of Aug 30, 2026).
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