A Fresh Look at SLB (NYSE:SLB) Valuation Following New Multi-Year E.ON Deal

SLB (NYSE:SLB) just announced a finalized multi-year service agreement with E.ON, set to provide about 24 million SEK in revenue beginning January 2026. This deal highlights SLB’s growing pipeline and strengthened contracted earnings base.

See our latest analysis for SLB.

SLB’s recent multi-year agreement adds another win to a year marked by some notable volatility. While the share price is currently at $35.19, the 1-month share price return of nearly 5% contrasts with a steeper 12-month total shareholder return of -17.7%. This hints that momentum is building off a low base. The stock’s long-term returns remain solid, but the current recovery phase shows investors are weighing renewed growth potential against recent weakness.

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With SLB trading well below analyst targets despite a recent rebound, the central question is whether the current market is underestimating its growth prospects or if future gains are already fully reflected in the price.

Most Popular Narrative: 22.4% Undervalued

With SLB closing at $35.19 and the most popular narrative calculating a fair value near $45.37, the gap between market price and analyst projection is clear. Here is a key section from the narrative itself that underpins this perspective on upside potential.

Persistent industry demand for digital transformation, automation, and efficiency, driven by operator focus on production optimization and recovery, has led to strong adoption and double-digit year-over-year growth in SLB's digital business (notably the DELFI platform). This bolsters net margins and creates a more stable, higher-margin recurring revenue stream.

Read the complete narrative.

Curious what lies behind this bold projection? The narrative hinges on powerful growth levers and an aggressive outlook on margins and profitability. But which specific business drivers or dramatic financial trends are expected to escalate SLB’s worth? Find out the figures and assumptions that shape this bullish fair value.

Result: Fair Value of $45.37 (UNDERVALUED)

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

However, ongoing macro uncertainties and potential integration challenges with ChampionX could quickly shift momentum and limit the bullish case for SLB.

Find out about the key risks to this SLB narrative.

Build Your Own SLB Narrative

If you see things differently or want to dig into the numbers on your own terms, you can put together your own view in just minutes. Do it your way

A great starting point for your SLB research is our analysis highlighting 4 key rewards and 2 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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