Even in this Rich Market, Transocean Is Offering Investors Value

Any price-conscious investor out there is likely looking at the valuation of today's market and saying "no thanks." With this bull market heading into its eighth (!) year, and the S&P 500 valued at a cyclically adjusted price to earnings ratio of 30 (!!!) it seems like the word "value" doesn't really apply anymore. Luckily, the aggregate valuation of the market doesn't apply to every stock, and there's a fair share of companies in out-of-favor industries, or that Wall Street just isn't too keen on.

One company no one can argue is overvalued today is offshore rig company Transocean (NYSE: RIG). As it stands today, shares of Transocean trade at a price to tangible book value of just 0.2 times. That's akin to saying the market thinks the company is worth $0.20 on the dollar for its assets after it has paid off all of its debts.

It's no shocker that the oil market is going through a tough time, but this share price seems like an egregious overreaction from the market. Let's take a look at why there's so much bearish sentiment from Wall Street and why it looks like there's a lot of value in shares today.

Source: Fool.com