Below $30 next...
When looking at earnings, most people look at the past four quarters. With a stock like SDRL I consider that to be past history and tend to look at the current earnings and project that for four quarters, such that the P/E becomes:32/(.89x4) = 8.99
You have no idea what this company does or how the financials for a young UDW driller work.
forward pe is at 10-12, so buy.