Baker Hughes Co (BKR) DCF Valuation
TGM's two-stage DCF values Baker Hughes Co (BKR) between $26.05 and $48.65 depending on assumptions, with a base case of $35.17. 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 (8.8%) reflects its beta.
What would today's price require?
$56.38 is justified only if free cash flow grows about +17.8% a year (fading to 2.5% long-run) at a 8.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.8%/yr | 9.8% | $26.05 |
| Base case | 6.8%/yr | 8.8% | $35.17 |
| Optimistic | 9.8%/yr | 7.8% | $48.65 |
| Analyst DCF (FMP) | independent reference — different model | $63.23 | |
Current Price
$56.38
Market-Implied Growth
+17.8%/yr
vs +6.8% 5Y actual
Model Scenario Range
$26.05 – $48.65
model output — not a price target
BKR DCF Fair Value Calculator
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
$41.24
-26.9% vs $56.38
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.8%/yr FCF growth and 10-year horizon fixed. Green = above today's $56.38; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.8% | $54.17 | $58.29 | $63.36 | $69.77 | $78.13 |
| 7.8% | $44.42 | $47.06 | $50.19 | $53.98 | $58.64 |
| 8.8% | $37.38 | $39.17 | $41.24 | $43.66 | $46.55 |
| 9.8% | $32.07 | $33.33 | $34.76 | $36.41 | $38.31 |
| 10.8% | $27.92 | $28.84 | $29.87 | $31.04 | $32.36 |
About Baker Hughes Co
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company’s Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company has a collaboration with Google Cloud to develop advanced AI-enabled power optimization and sustainability solutions for the global data center sector. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.
- Sector
- Energy
- Industry
- Oil & Gas Equipment & Services
- CEO
- Lorenzo Simonelli