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Archer Limited (ARCH) Fair Value & Analysis

Energy · NO · Market cap 2.4B NOK

AL Archer Limited ARCH · OL
Pricekr 25.05
Fair Valuekr 5.68
Upside-77.3%
Quality34/100
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Mixed Growth
Loss-making · -2.2% net margin
High debt · generates free cash flow
1.06% dividend yield
Trails peers (4/13)
Narrow moat 23/100
Evidence: Medium Range kr 3.19 – kr 8.17 Share as image

Fair value as of: Jul 11, 2026

From 13 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from kr 5.02 to kr 5.68 (+13.1%) since Jun 24, 2026. Share price +3.7% over the past month.

Below-average quality, and screening another 77% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (kr 8.17). The favourable scenario is already priced in.
  • Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (kr 3.19 to kr 8.17) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

kr 45.30 kr 16.76 Fair Value kr 5.68 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range kr 16.76 – kr 45.30 · fair‑value band kr 3.19 – kr 8.17 · the kr 25.05 price screens above the kr 5.68 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Archer Limited (ARCH) currently trades at kr 25.05, while our model-based Fair Value estimate is kr 5.68, implying the stock looks roughly 77.3% overvalued today. The Quality Score stands at 34/100 (below-average quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Archer Limited generated revenue of 1.2B NOK at a net margin of -2.2%. Revenue declined 6.9% year over year. It earns a return on equity of -10.7%. Net debt stands at 426M NOK. Fundamentals as of Jul 11, 2026

Our scenario range runs from kr 3.19 (bear case) to kr 8.17 (bull case); at kr 25.05, 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 15% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -45% fair-value upside, at -77%, ARCH screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Growth DCF kr 1.27 kr 3.37 kr 6.19 80
Rev-Margin DCF kr 2.70 kr 6.76 kr 11.22 74
ROIC Compounder kr 3.02 kr 4.62 kr 6.49 72
All 13 models by family
DCF Models
FCF DCF kr 1.16 kr 3.49 kr 6.78 38
5Y Revenue Exit kr 2.70 kr 6.76 kr 11.86 39
5Y EBITDA Exit kr 2.11 kr 5.69 kr 9.75 41
10Y Revenue Exit kr 1.84 kr 5.31 kr 9.82 36
10Y EBITDA Exit kr 1.70 kr 4.60 kr 8.28 37
Earnings-Based
EPV kr 2.84 kr 3.90 kr 4.82 59
Multiples
EV/EBIT kr 2.66 kr 4.85 kr 7.04 53
EV/EBITDA kr 3.57 kr 6.06 kr 8.55 54
EV/Revenue kr 4.06 kr 7.48 kr 10.89 43
Asset-Based
NCAV (Graham) kr 0.9000 kr 1.20 kr 1.80 50
Growth DCF
Growth DCF kr 1.27 kr 3.37 kr 6.19 80
Rev-Margin DCF kr 2.70 kr 6.76 kr 11.22 74
Economic Profit
ROIC Compounder kr 3.02 kr 4.62 kr 6.49 72

Widest divergence: Multiples (kr 6.06) versus Asset-Based (kr 1.20). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.2B NOK
Revenue growth (YoY) -6.9%
Net margin -2.2%
Return on equity -10.7%
Free cash flow 48.4M NOK FY2025
Operating margin 6.1%
More key figures
EPS (TTM) kr -2.51
Dividend yield 1.0%
EPS growth (YoY) -2.7%
Net debt 426M NOK FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 34/100

Of which business quality 34 · Market factors (momentum, volatility) 59

Profitability 37
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 29
Earnings quality: real cash, not paper profit
Fin. Strength 7
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 50
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.

About the company

Archer Limited, together with its subsidiaries, provides various oilfield products and services to the oil and gas industry in Norway, Europe, North America, south America, and internationally. The company operates through Platform Operations, Well Services, Renewables, and Land Drilling segments.

Full company description

Archer Limited, together with its subsidiaries, provides various oilfield products and services to the oil and gas industry in Norway, Europe, North America, south America, and internationally. The company operates through Platform Operations, Well Services, Renewables, and Land Drilling segments. It provides platform drilling and workover, platform plug and abandonment, MODU Management, modular rigs, rentals, drill pipe pool, well engineering, facilities engineering, project management and consulting, construction and installations, and inspection services. The company also offers well services, including coiled tubing, oiltools, wireline, well construction and completion, well intervention and workover, well P&A and slot recovery, surface solutions, geothermal, and CCUS. In addition, it provides land drilling services, including drilling rigs and workover services. Further, the company offers renewable energy, such as geothermal drilling for district heating, carbon storage, floating offshore wind, wind turbine, and hydropower services. The company was formerly known as Seawell Limited and changed its name to Archer Limited in May 2011. Archer Limited was incorporated in 2007 and is headquartered in Sandnes, Norway.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Archer Limited reported revenue of kr 1.2B in FY2025 versus kr 936M in FY2021, a compound +6.3%/yr. Reported net income was −kr 58.7M in FY2025.

Growth Quality 47/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.2B NOK
Latest YoY
+7.6%
Avg. 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.
+7.2%
Avg. 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.
+7.7%
Avg. growth/yr (9Y) 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.
+3.4%
Revenue +6.3%/yr
FY21 kr 936M
FY22 kr 970M
FY23 kr 1.2B
FY24 kr 1.1B
FY25 kr 1.2B
Net income
FY21 −kr 14.8M
FY22 kr 9.8M
FY23 −kr 28.1M
FY24 −kr 21.6M
FY25 −kr 58.7M

ARCH screens 77% overvalued. Compare with Noble Corporation →

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Cite: Fair Value Calculator (2026). "Archer Limited Fair Value". https://www.fairvalue-calculator.com/stock/ARCH

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Oil & Gas Drilling · 31 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 34 · Bottom 25%
Fair Value upside −77% · Bottom 25%
Return on assets 6% · Top 25%
Net margin (TTM) -2% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth -7% · Below median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 2.41× · Higher than 75% of peers

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

P/B 1.41× · Pricier than median
P/S (TTM) 0.22× · Cheaper than 75% of peers
P/FCF 5.2× · Cheaper than median
EV/EBITDA 3.5× · Cheaper than 75% of peers

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.

VALUE 0 · sector 0
FUTURE 0 · sector 2
PAST 0 · sector 17
HEALTH 0 · sector 84
DIVIDEND 21 · sector 66

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

Values & ESG

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

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Drilling stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Noble Corporation NE $41.79 $23.09 -45%
Sinopec Oilfield Service Corporation 600871 ¥2.21 ¥0.4900 -78%
Transocean Ltd RIG $5.14 $2.16 -58%
Valaris Limited VAL $79.57 $63.09 -21%
Patterson-UTI Energy, Inc PTEN $9.39 $12.20 +30%
Helmerich & Payne, Inc HP $34.14 $9.25 -73%
Seadrill Limited SDRL $42.86 $10.17 -76%
Arabian Drilling Company 2381 80.70 SAR 11.09 SAR -86%
Nabors Industries Ltd NBR $84.72 $209.20 +147%
Borr Drilling Limited BORR kr 41.99 kr 27.75 -34%

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Frequently asked questions

Is Archer Limited (ARCH) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of kr 5.68 versus a price of kr 25.05, about −77% (overvalued).
What is the fair value of ARCH?
Our model-based fair value for Archer Limited is kr 5.68 (as of Jul 11, 2026), built from audited fundamentals. The current price is kr 25.05.
What is the quality score of ARCH?
Archer Limited has a Quality Score of 34/100. 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 Archer Limited (ARCH)?
Archer Limited reported trailing-twelve-month revenue of about 1.2B NOK (latest available figure, as of Jul 11, 2026).
What is the net profit margin of ARCH?
The net profit margin of Archer Limited is about -2.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Archer Limited pay a dividend?
Archer Limited currently shows a dividend yield of about 0.97% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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