Is Noble Corp. Plc overvalued or undervalued?

As of 18 February 2025, the valuation grade for Noble Corp. Plc has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 8, which is notably lower than its peer Patterson-UTI Energy, Inc. that has a P/E of -26.36. Additionally, Noble's EV to EBITDA stands at 4.78, compared to Patterson's 3.83, further highlighting its competitive positioning in the market.
Noble Corp. Plc's Price to Book Value is 0.94, and it boasts a dividend yield of 3.64%, which is appealing for income-focused investors. The company's ROCE is 12.35% and ROE is 11.68%, indicating efficient use of capital and strong profitability relative to its equity. Despite recent stock performance lagging behind the S&P 500, particularly over the past year with a decline of 37.01% compared to the index's gain of 10.26%, the underlying fundamentals suggest that the stock is undervalued and presents a compelling investment opportunity.