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Shares of Diamond Offshore Drilling Rank the Highest in Terms of Forward P/E Ratio in the Oil & Gas Drilling Industry (DO, RIG, RDC, NE, ESV)

By Shiri Gupta

Below are the three companies in the Oil & Gas Drilling industry with the highest forward price to earnings (P/E) ratios. Forward P/E uses estimated earnings to compare relative value among companies in the same industry. Generally, the lower the forward P/E, the more undervalued a company is believed to be.

Diamond Offshore Drilling ranks highest with a a forward P/E ratio of 22.46. Following is Transocean with a a forward P/E ratio of 14.95. Rowan ranks third highest with a a forward P/E ratio of 5.28.

Noble follows with a a forward P/E ratio of 4.23, and ENSCO International rounds out the top five with a a forward P/E ratio of 2.87.

SmarTrend recommended that its subscribers protect gains by selling shares of Noble on May 11th, 2016 by issuing a Downtrend alert when the shares were trading at $9.30. Since that call, shares of Noble have fallen 40.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest forward p/e ratio Diamond Offshore Drilling Transocean rowan Noble ensco international

Ticker(s): DO RIG RDC NE ESV