BKR Valuation

Baker Hughes Co

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43.290

+0.35(0.815%)1D

Overview
Forecast
Valuation
Earnings

BKR Relative Valuation

BKR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BKR is overvalued; if below, it's undervalued.

Historical Valuation

Baker Hughes Co (BKR) is now in the Fair zone, suggesting that its current forward PE ratio of 17.47 is considered Fairly compared with the five-year average of 21.87. The fair price of Baker Hughes Co (BKR) is between 37.41 to 70.05 according to relative valuation methord.

Relative Value

Fair Zone

37.41-70.05

Current Price：43.29

Fair

17.47

Trailing

Forward

9.62

EV/EBITDA

Baker Hughes Co. (BKR) has a current EV/EBITDA of 9.62. The 5-year average EV/EBITDA is 8.94. The thresholds are as follows: Strongly Undervalued below 6.82, Undervalued between 6.82 and 7.88, Fairly Valued between 10.01 and 7.88, Overvalued between 10.01 and 11.07, and Strongly Overvalued above 11.07. The current Forward EV/EBITDA of 9.62 falls within the Historic Trend Line -Fairly Valued range.

12.64

EV/EBIT

Baker Hughes Co. (BKR) has a current EV/EBIT of 12.64. The 5-year average EV/EBIT is 13.66. The thresholds are as follows: Strongly Undervalued below 6.67, Undervalued between 6.67 and 10.16, Fairly Valued between 17.16 and 10.16, Overvalued between 17.16 and 20.66, and Strongly Overvalued above 20.66. The current Forward EV/EBIT of 12.64 falls within the Historic Trend Line -Fairly Valued range.

1.56

Baker Hughes Co. (BKR) has a current PS of 1.56. The 5-year average PS is 1.14. The thresholds are as follows: Strongly Undervalued below 0.57, Undervalued between 0.57 and 0.86, Fairly Valued between 1.42 and 0.86, Overvalued between 1.42 and 1.70, and Strongly Overvalued above 1.70. The current Forward PS of 1.56 falls within the Overvalued range.

11.40

P/OCF

Baker Hughes Co. (BKR) has a current P/OCF of 11.40. The 5-year average P/OCF is 10.48. The thresholds are as follows: Strongly Undervalued below 6.65, Undervalued between 6.65 and 8.57, Fairly Valued between 12.40 and 8.57, Overvalued between 12.40 and 14.32, and Strongly Overvalued above 14.32. The current Forward P/OCF of 11.40 falls within the Historic Trend Line -Fairly Valued range.

14.42

P/FCF

Baker Hughes Co. (BKR) has a current P/FCF of 14.42. The 5-year average P/FCF is 17.06. The thresholds are as follows: Strongly Undervalued below 9.77, Undervalued between 9.77 and 13.41, Fairly Valued between 20.70 and 13.41, Overvalued between 20.70 and 24.35, and Strongly Overvalued above 24.35. The current Forward P/FCF of 14.42 falls within the Historic Trend Line -Fairly Valued range.

Baker Hughes Co (BKR) has a current Price-to-Book (P/B) ratio of 2.39. Compared to its 3-year average P/B ratio of 2.19 , the current P/B ratio is approximately 9.13% higher. Relative to its 5-year average P/B ratio of 1.90, the current P/B ratio is about 25.92% higher. Baker Hughes Co (BKR) has a Forward Free Cash Flow (FCF) yield of approximately 5.11%. Compared to its 3-year average FCF yield of 4.62%, the current FCF yield is approximately 10.72% lower. Relative to its 5-year average FCF yield of 4.95% , the current FCF yield is about 3.38% lower.

2.39

P/B

Median3y

2.19

Median5y

1.90

5.11

FCF Yield

Median3y

4.62

Median5y

4.95

Competitors Valuation Multiple

The average P/S ratio for BKR's competitors is 1.14, providing a benchmark for relative valuation. Baker Hughes Co Corp (BKR) exhibits a P/S ratio of 1.56, which is 36.96% above the industry average. Given its robust revenue growth of -3.21%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Noble Corporation PLC

Patterson-UTI Energy Inc

0.45

-9.56%

2.09B

Performance Decomposition

Market capitalization of BKR increased by 23.77% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.14 to 10.29.

The secondary factor is the P/E Change, contributed 0.57%to the performance.

Overall, the performance of BKR in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-3.21%

7.14B → 6.91B

Revenue Growth

26.41%

8.14 → 10.29

Margin Expansion

0.57%

13.94 → 14.02

P/E Change

23.77%