Is Transocean Ltd. overvalued or undervalued?

As of 1 November 2021, the valuation grade for Transocean Ltd. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued based on several key metrics, including a Price to Book Value of 0.25, an EV to EBITDA ratio of 7.28, and an EV to Capital Employed ratio of 0.53. In comparison, Noble Corp. Plc, which is rated very attractive, has a lower EV to EBITDA of 5.0870, while Valaris Ltd. is rated fair with an EV to EBITDA of 6.3049. Recent stock performance shows that Transocean Ltd. has underperformed against the S&P 500, with a year-to-date return of -7.73% compared to the S&P 500's 12.22%. This trend reinforces the perception that the stock is overvalued in the current market environment.