Transocean (RIG) intrinsic value & 10-year financials

Transocean (RIG) has a Graham intrinsic value of $13.35 per share. At $5.62 on Oct 17, 2026, the stock trades 58% below that value. Over the last 10 fiscal years revenue shrank 0.5% a year to $4.0B, with an average return on invested capital of -4.3%.

Graham intrinsic value
$13.35
Share price (Oct 17, 2026)
$5.62
Price vs Graham value
58% below
Market cap
$5.4B
Revenue (FY2025)
$4.0B
Revenue growth (10-yr CAGR)
-0.5%
ROIC (10-yr avg)
-4.3%
Free cash flow (FY2025)
$626.0M

RIG 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $4.0B -$2.9B -$3.04 $626.0M -58.9% -16.1%
FY2024 $3.5B -$512.0M -$0.76 $193.0M -11.8% -2.5%
FY2023 $2.8B -$954.0M -$1.24 -$263.0M -11.5% -1.9%
FY2022 $2.6B -$621.0M -$0.89 -$269.0M -1.2% -0.2%
FY2021 $2.6B -$592.0M -$0.93 $367.0M -4.4% -0.6%
FY2020 $3.2B -$567.0M -$0.92 $133.0M -15.6% -2.7%
FY2019 $3.1B -$1.3B -$2.05 -$47.0M -23.3% -3.7%
FY2018 $3.0B -$2.0B -$4.27 $374.0M -41.5% -6.6%
FY2017 $3.0B -$3.1B -$8.00 $647.0M -84.2% -13.2%
FY2016 $4.2B $778.0M $2.08 $567.0M 27.2% 4.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Transocean Ltd. is facing top-line stagnation, with revenue contracting over the decade.

Transocean Ltd. has historically struggled to out-earn its cost of capital, averaging just -4.3% ROIC.

Transocean Ltd. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Transocean Ltd. is modeled at -0.5% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $13.35 per share.

RIG stock: frequently asked questions

What is the intrinsic value of Transocean (RIG) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a -0.5% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, RIG's intrinsic value is about $13.35 per share.

Is RIG stock undervalued?

At $5.62 (close on Oct 17, 2026), RIG trades 58% below its Graham value of $13.35. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Transocean grown?

Revenue went from $4.2B in fiscal 2016 to $4.0B in fiscal 2025, a compound annual growth rate of -0.5%. Net income was -$2.9B in fiscal 2025.

Does Transocean generate free cash flow?

Transocean generated $626.0M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 7 of the last 10 reported years.

What is RIG's return on invested capital?

Average ROIC over the last 10 fiscal years was -4.3%, and average return on equity was -10.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this RIG data come from?

From Transocean's annual 10-K filings on SEC EDGAR, most recently filed Aug 7, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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