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DCF Valuation
Base-case fair value
$43.50
Intrinsic $58.00 · 25% MOS
Current price: $64.27
Base-case summary
Our base-case DCF for Baker Hughes Co (BKR) projects 10 years of free cash flow growth at 8.6% for years 1–5 and 4.3% for years 6–10, anchored to 8.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $2.3B in trailing free cash flow, this produces an intrinsic value of $58.00 per share. A 25% safety margin gives a fair value of $43.50, suggesting the stock is currently 32% overvalued against the $64.27 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$2.3B
Cash & equivalents
$14.8B
Total debt
$16.2B
Shares outstanding
996M