Earnings are cyclical, book value steady although not compounding at a great rate recently.
Last 5 years shows an annual compounded growth rate of 3,62%. Last 3 years shows an annual compounded growth rate of 2,71%.
Does this mean that the business is worth 34% of its tangible equity value?
No. Even if Bonheur might have to write down some of their assets in the future because of rigs not generating any income, it is not likely that they would have to write down more than half of their assets.
What is this business worth?
Asset value: Tangible book value per share currently is at 194 NOK. Todays price 67.
Earnings power value: 10% required return a year equals an upside of 79% looking at last 3 years average earnings, 108% looking at 5 years average earnings and 206% looking at 10 years average earnings.
If you believe in reversion to mean there is certainly upside.
Disclosure: The author had a long position when this post/analysis was written.