We’ve recently updated our valuation analysis.

Schlumberger Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SLB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA15.7x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SLB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.2x
HAL Halliburton
20.3x21.6%US$35.3b
WHD Cactus
35.2x20.8%US$4.1b
CHX ChampionX
47.2x24.2%US$6.2b
RES RPC
13.9x26.8%US$2.0b
SLB Schlumberger
25.1x17.1%US$74.9b

Price-To-Earnings vs Peers: SLB is good value based on its Price-To-Earnings Ratio (25.1x) compared to the peer average (29.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a36.1%
n/an/an/a

Price-To-Earnings vs Industry: SLB is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the US Energy Services industry average (23.8x)


Price to Earnings Ratio vs Fair Ratio

What is SLB'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.

SLB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.1x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: SLB is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).


Share Price vs Fair Value

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

Below Fair Value: SLB ($52.79) is trading below our estimate of fair value ($57.29)

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


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 SLB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$52.79
US$59.10
+12.0%
8.3%US$69.00US$47.00n/a27
Nov ’23US$51.55
US$56.49
+9.6%
9.0%US$69.00US$46.00n/a28
Oct ’23US$35.90
US$49.43
+37.7%
8.7%US$61.00US$41.00n/a27
Sep ’23US$36.85
US$49.43
+34.1%
8.7%US$61.00US$41.00n/a27
Aug ’23US$36.40
US$49.70
+36.5%
7.9%US$61.00US$43.00n/a28
Jul ’23US$35.65
US$50.40
+41.4%
6.7%US$59.00US$44.00n/a27
Jun ’23US$46.68
US$49.91
+6.9%
5.7%US$55.00US$44.00n/a27
May ’23US$39.01
US$49.51
+26.9%
8.9%US$55.00US$31.00n/a27
Apr ’23US$41.69
US$45.45
+9.0%
10.8%US$56.00US$31.00n/a27
Mar ’23US$37.67
US$42.73
+13.4%
11.3%US$49.00US$27.70n/a29
Feb ’23US$39.52
US$41.97
+6.2%
11.6%US$49.00US$27.70n/a29
Jan ’23US$29.95
US$39.40
+31.6%
11.5%US$49.00US$27.70n/a29
Dec ’22US$28.38
US$39.33
+38.6%
11.5%US$49.00US$27.70US$51.7629
Nov ’22US$33.30
US$38.67
+16.1%
13.4%US$48.00US$25.00US$51.5529
Oct ’22US$30.36
US$36.13
+19.0%
14.7%US$47.00US$25.00US$35.9028
Sep ’22US$27.98
US$35.79
+27.9%
16.5%US$47.00US$24.00US$36.8526
Aug ’22US$28.83
US$35.66
+23.7%
18.5%US$47.00US$18.10US$36.4025
Jul ’22US$33.07
US$33.78
+2.2%
21.6%US$47.00US$18.10US$35.6525
Jun ’22US$32.93
US$31.64
-3.9%
19.1%US$47.00US$18.10US$46.6826
May ’22US$27.05
US$30.80
+13.9%
18.1%US$47.00US$18.10US$39.0127
Apr ’22US$28.10
US$29.56
+5.2%
20.9%US$47.00US$18.10US$41.6927
Mar ’22US$28.72
US$28.71
-0.04%
20.3%US$48.00US$18.10US$37.6727
Feb ’22US$22.16
US$28.63
+29.2%
20.3%US$48.00US$18.10US$39.5227
Jan ’22US$21.83
US$25.68
+17.6%
23.9%US$48.00US$17.00US$29.9529
Dec ’21US$21.07
US$24.22
+15.0%
24.8%US$48.00US$17.00US$28.3829

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


Discover undervalued companies