Petroleum Geo-Services (OTCPK:PGSVY) is a Norwegian seismic data provider, which conducts underwater geophysical surveys for oil exploration companies. I will not go deeper into how this industry works (you can check out my previous article about this sector here), as the purpose of this article is to perform a data-driven approach to estimate the default probability of PGS and subsequently derive its risk-adjusted valuation.
Background
Oil prices fell off a cliff in mid-2014, which hurt the oil sector as a whole and drastically reduced the willingness to invest in oil exploration and