Recently, I have composed a few articles on Seadrill Limited (NYSE:SDRL). Within the articles: Seadrill: What To Expect?, and Seadrill: Fundamental Analysis WACC, Cost of Debt, Cost of Equity, I looked as some of the issues regarding the recent sell-off, what I believe is in store for the company moving forward and current valuations. Within the article Seadrill: What To Expect? I quoted a valuation around $34.00, so in the article below here is the DCF valuation indicating how I came to that conclusion.
I believe using the Discounted Cash Flow valuation model for Seadrill to be fair because DCF analysis can help one see where the company's value is coming from and one can generate an opinion based on that.
The Discounted Cash Flow valuation relies heavily on the company's operating income, tax's paid, depreciation & amortization as well as the EBITDA or earnings before interest, taxes and depreciation & amortization to establish the value of a company.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.