Halliburton (HAL) Valuation Check After VoltaGrid Data Center Power Expansion Milestone

Halliburton (HAL) just put a clearer marker on its energy transition strategy by expanding its VoltaGrid partnership to secure manufacturing for 400 MW of modular natural gas power aimed at hyperscale data centers across the Eastern Hemisphere.

See our latest analysis for Halliburton.

The VoltaGrid deal lands after a busy few weeks for Halliburton, including new C suite appointments and upcoming earnings. It also rides on solid momentum, with a 90 day share price return of 27.65 percent and a five year total shareholder return of 61.85 percent, suggesting that long term value creation remains intact.

If moves like Halliburton’s data center push have you rethinking the energy tech landscape, it could be a smart time to explore high growth tech and AI stocks for other potential winners.

With the stock trading just below consensus targets but at a hefty intrinsic discount, are investors still underestimating Halliburton’s evolving data center narrative, or is the market already baking in the next leg of growth?

Most Popular Narrative: 5.8% Undervalued

With Halliburton shares last closing at $28.62 against a narrative fair value near $30.38, the storyline leans modestly positive on upside potential.

Exposure to onsite and data center related power generation, including the stake in VoltaGrid, is viewed as an underappreciated growth vector that could provide incremental upside to both earnings and the stock’s valuation framework.

Read the complete narrative.

Curious how a slow revenue ramp, firmer margins, and a higher future earnings multiple still add up to upside from here? Want the full playbook?

Result: Fair Value of $30.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerating decarbonization policies and slower than expected execution in power generation or data center projects could quickly challenge this modest undervaluation thesis.

Find out about the key risks to this Halliburton narrative.

Build Your Own Halliburton Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Halliburton research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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