Using the industry peer median P/E multiple (trailing + forward), Baker Hughes Company (BKR) has a fair value of $54.34 based on 4 comparable companies in the Oil & Gas Equipment & Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Baker Hughes CompanyBKR | 62,085 | 24.0x | 23.7x |
| SLB N.V.SLB | 78,737 | 22.4x | 18.7x |
| ONEOK, Inc.OKE | 59,049 | 17.3x | 16.7x |
| Diamondback Energy, Inc.FANG | 57,076 | 35.3x | 16.3x |
| Halliburton CompanyHAL | 33,093 | 26.2x | 17.7x |
| Industry Median | 24.3x | 17.2x | |
| (*) Profit after tax | 2,588 | 2,621 | |
| Equity Value | 62,914 | 45,114 | |
| (/) Outstanding shares | 994 | 994 | |
| Fair Price | $63 | $45 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.