HAL Valuation

Halliburton Co

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21.880

-0.46(-2.059%)1D

Overview
Forecast
Valuation
Earnings

HAL Relative Valuation

HAL'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, HAL is overvalued; if below, it's undervalued.

Historical Valuation

Halliburton Co (HAL) is now in the Fair zone, suggesting that its current forward PE ratio of 11.39 is considered Fairly compared with the five-year average of 13.96. The fair price of Halliburton Co (HAL) is between 19.33 to 35.80 according to relative valuation methord.

Relative Value

Fair Zone

19.33-35.80

Current Price：21.88

Fair

11.39

Trailing

Forward

6.71

EV/EBITDA

Halliburton Co. (HAL) has a current EV/EBITDA of 6.71. The 5-year average EV/EBITDA is 8.10. The thresholds are as follows: Strongly Undervalued below 5.03, Undervalued between 5.03 and 6.56, Fairly Valued between 9.63 and 6.56, Overvalued between 9.63 and 11.17, and Strongly Overvalued above 11.17. The current Forward EV/EBITDA of 6.71 falls within the Historic Trend Line -Fairly Valued range.

9.72

EV/EBIT

Halliburton Co. (HAL) has a current EV/EBIT of 9.72. The 5-year average EV/EBIT is 11.04. The thresholds are as follows: Strongly Undervalued below 4.91, Undervalued between 4.91 and 7.98, Fairly Valued between 14.11 and 7.98, Overvalued between 14.11 and 17.17, and Strongly Overvalued above 17.17. The current Forward EV/EBIT of 9.72 falls within the Historic Trend Line -Fairly Valued range.

0.91

Halliburton Co. (HAL) has a current PS of 0.91. The 5-year average PS is 1.25. The thresholds are as follows: Strongly Undervalued below 0.79, Undervalued between 0.79 and 1.02, Fairly Valued between 1.47 and 1.02, Overvalued between 1.47 and 1.70, and Strongly Overvalued above 1.70. The current Forward PS of 0.91 falls within the Undervalued range.

6.12

P/OCF

Halliburton Co. (HAL) has a current P/OCF of 6.12. The 5-year average P/OCF is 8.85. The thresholds are as follows: Strongly Undervalued below 4.95, Undervalued between 4.95 and 6.90, Fairly Valued between 10.80 and 6.90, Overvalued between 10.80 and 12.74, and Strongly Overvalued above 12.74. The current Forward P/OCF of 6.12 falls within the Undervalued range.

9.61

P/FCF

Halliburton Co. (HAL) has a current P/FCF of 9.61. The 5-year average P/FCF is 13.99. The thresholds are as follows: Strongly Undervalued below 6.70, Undervalued between 6.70 and 10.34, Fairly Valued between 17.63 and 10.34, Overvalued between 17.63 and 21.27, and Strongly Overvalued above 21.27. The current Forward P/FCF of 9.61 falls within the Undervalued range.

Halliburton Co (HAL) has a current Price-to-Book (P/B) ratio of 1.81. Compared to its 3-year average P/B ratio of 3.19 , the current P/B ratio is approximately -43.11% higher. Relative to its 5-year average P/B ratio of 3.39, the current P/B ratio is about -46.50% higher. Halliburton Co (HAL) has a Forward Free Cash Flow (FCF) yield of approximately 11.28%. Compared to its 3-year average FCF yield of 7.05%, the current FCF yield is approximately 60.10% lower. Relative to its 5-year average FCF yield of 6.67% , the current FCF yield is about 69.06% lower.

1.81

P/B

Median3y

3.19

Median5y

3.39

11.28

FCF Yield

Median3y

7.05

Median5y

6.67

Competitors Valuation Multiple

The average P/S ratio for HAL's competitors is 1.49, providing a benchmark for relative valuation. Halliburton Co Corp (HAL) exhibits a P/S ratio of 0.91, which is -38.90% above the industry average. Given its robust revenue growth of -5.54%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Weatherford International PLC

Performance Decomposition

Market capitalization of HAL decreased by 28.84% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.93 to 10.47.

The secondary factor is the Revenue Growth, contributed -5.54%to the performance.

Overall, the performance of HAL in the past 1 year is driven by P/E Change. Which is more unsustainable.

-5.54%

5.83B → 5.51B

Revenue Growth

-28.72%

12.22 → 8.71

Margin Expansion

5.42%

9.93 → 10.47

P/E Change

-28.84%