Using an unlevered Free Cash Flow to Firm (FCFF) model, we project SLB N.V.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.4% to -1.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 86, DPO 60, DIO 61). At a 7.3% WACC with mid-year discounting, the terminal value (79% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 12.2x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $56.34 per share, suggesting SLB is fairly valued by 7.0% at the current price of $52.65.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 4,984 | 5,265 | 5,566 | 5,618 | 5,558 | 5,696 |
| (−) Net Interest | 634 | 669 | 708 | 714 | 706 | 724 |
| (+) D&A | 1,762 | 1,942 | 2,038 | 2,084 | 2,127 | 2,181 |
| EBITDA | 7,380 | 7,877 | 8,312 | 8,417 | 8,391 | 8,601 |
| (−) Tax | 941 | 994 | 1,051 | 1,060 | 1,049 | — |
| (−) CapEx | 2,080 | 2,197 | 2,322 | 2,344 | 2,319 | — |
| (−) ΔWC | -84 | 495 | 529 | 92 | -107 | — |
| Free Cash Flow (FCF) | 4,443 | 4,191 | 4,410 | 4,920 | 5,130 | — |
| Peers' EBITDA Multiple | 12.2x | |||||
| Terminal Value | 104,677 | |||||
| WACC / Discount Rate | 7.26% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 4,290 | 3,773 | 3,701 | 3,849 | 3,742 | 73,727 |
| Enterprise Value | 93,082 | |||||
| Projection Period | 19,355 | 20.8% | ||||
| Terminal Value | 73,727 | 79.2% | ||||
| (−) Current Net Debt | 9,272 | |||||
| Equity Value | 83,810 | |||||
| (÷) Outstanding Shares | 1488M | |||||
| Fair Price | $56 | +7.0% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.2x | 10.2x | 12.2x | 14.2x | 16.2x |
|---|---|---|---|---|---|
| 5.3% | $44 | $53 | $62 | $71 | $80 |
| 6.3% | $42 | $50 | $59 | $68 | $76 |
| 7.3% | $40 | $48 | $56 | $64 | $73 |
| 8.3% | $38 | $46 | $54 | $62 | $69 |
| 9.3% | $37 | $44 | $51 | $59 | $66 |
Current price: $52.65. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.