TGM's two-stage DCF values Baker Hughes Company (BKR) between $25.05 and $46.57 depending on assumptions, with a base case of $33.76. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.9%) reflects its beta.
What would today's price require?
$61.55 is justified only if free cash flow grows about +20.3% a year (fading to 2.5% long-run) at a 8.9% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.3%/yr | 9.9% | $25.05 |
| Base case | 6.3%/yr | 8.9% | $33.76 |
| Optimistic | 9.3%/yr | 7.9% | $46.57 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 8, 2026 · assumptions not provided | $57.32 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$61.55
Market-Implied Growth
+20.3%/yr
vs +6.3% 5Y actual
Model Scenario Range
$25.05 – $46.57
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for BKR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.9B · 0.99B shares · net debt $3.0B
Estimated Fair Value
$33.76
-45.2% vs $61.55
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.3%/yr FCF growth and 10-year horizon fixed. Green = above today's $61.55; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.9% | $42.23 | $46.10 | $50.85 | $56.81 | $64.51 |
| 7.9% | $34.99 | $37.62 | $40.72 | $44.45 | $49.02 |
| 8.9% | $29.72 | $31.60 | $33.76 | $36.29 | $39.28 |
| 9.9% | $25.71 | $27.11 | $28.69 | $30.49 | $32.58 |
| 10.9% | $22.56 | $23.63 | $24.83 | $26.17 | $27.70 |
