Baker Hughes Company

NasdaqGS:BKR Stock Report

Market Cap: US$41.0b

Baker Hughes Valuation

Is BKR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BKR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKR ($40.04) is trading below our estimate of fair value ($45.24)

Significantly Below Fair Value: BKR is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKR?

Key metric: As BKR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BKR. This is calculated by dividing BKR's market cap by their current earnings.
What is BKR's PE Ratio?
PE Ratio17.7x
EarningsUS$2.24b
Market CapUS$40.98b

Price to Earnings Ratio vs Peers

How does BKR's PE Ratio compare to its peers?

The above table shows the PE ratio for BKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.3x
SLB Schlumberger
11.8x9.9%US$55.0b
HAL Halliburton
9x6.4%US$23.9b
FTI TechnipFMC
19.2x12.9%US$12.7b
NOV NOV
5.1x-8.8%US$5.7b
BKR Baker Hughes
17.7x10.5%US$41.0b

Price-To-Earnings vs Peers: BKR is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

How does BKR's PE Ratio compare vs other companies in the US Energy Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NCSM NCS Multistage Holdings
1.4x-107.5%US$66.25m
BASX.Q Basic Energy Services
n/an/aUS$24.00
No more companies available in this PE range
BKR 17.7xIndustry Avg. 14.8xNo. of Companies5PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BKR is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the US Energy Services industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is BKR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: BKR is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BKR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$40.04
US$46.42
+15.9%
8.9%US$53.00US$34.00n/a25
Dec ’25US$43.95
US$44.22
+0.6%
9.5%US$53.00US$34.00n/a26
Nov ’25US$37.85
US$43.49
+14.9%
8.1%US$53.00US$34.00n/a26
Oct ’25US$36.75
US$42.63
+16.0%
7.7%US$50.00US$34.00n/a26
Sep ’25US$35.17
US$42.74
+21.5%
7.7%US$50.00US$34.00n/a26
Aug ’25US$37.65
US$42.57
+13.1%
7.8%US$50.00US$34.00n/a27
Jul ’25US$34.94
US$40.64
+16.3%
7.8%US$46.00US$34.00n/a26
Jun ’25US$33.48
US$40.60
+21.3%
7.7%US$46.00US$34.00n/a26
May ’25US$31.89
US$40.86
+28.1%
6.9%US$46.00US$34.00n/a26
Apr ’25US$33.44
US$40.49
+21.1%
8.0%US$49.00US$34.00n/a26
Mar ’25US$29.96
US$40.49
+35.1%
8.0%US$49.00US$34.00n/a26
Feb ’25US$28.63
US$40.19
+40.4%
8.4%US$49.00US$34.00n/a27
Jan ’25US$34.18
US$40.60
+18.8%
9.1%US$47.00US$30.00n/a29
Dec ’24US$33.79
US$40.69
+20.4%
8.8%US$47.00US$30.00US$43.9529
Nov ’24US$34.84
US$40.66
+16.7%
8.8%US$47.00US$30.00US$37.8529
Oct ’24US$35.32
US$39.79
+12.6%
8.8%US$47.00US$30.00US$36.7528
Sep ’24US$36.81
US$39.46
+7.2%
8.1%US$44.00US$30.00US$35.1728
Aug ’24US$35.77
US$39.00
+9.0%
9.2%US$44.00US$30.00US$37.6527
Jul ’24US$31.61
US$36.28
+14.8%
10.2%US$43.00US$28.00US$34.9425
Jun ’24US$28.61
US$36.20
+26.5%
10.7%US$43.00US$27.00US$33.4825
May ’24US$28.88
US$36.20
+25.3%
10.7%US$43.00US$27.00US$31.8925
Apr ’24US$28.86
US$36.58
+26.8%
9.0%US$43.00US$27.00US$33.4424
Mar ’24US$31.09
US$36.48
+17.3%
9.4%US$43.00US$28.50US$29.9624
Feb ’24US$31.99
US$35.85
+12.1%
9.3%US$42.00US$28.50US$28.6324
Jan ’24US$29.53
US$33.45
+13.3%
8.9%US$38.00US$28.50US$34.1824
Dec ’23US$29.26
US$33.37
+14.0%
9.2%US$38.00US$28.50US$33.7924

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 07:18
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Baker Hughes Company is covered by 55 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
Waqar SyedATB Capital Markets
Finbarr MacCarthyAtlantic Equities LLP