Halliburton Company (HAL) DCF Valuation
TGM's two-stage DCF values Halliburton Company (HAL) between $36.81 and $76.10 depending on assumptions, with a base case of $52.07. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.7%) reflects its beta.
What would today's price require?
$33.90 is justified only if free cash flow grows about +0.1% a year (fading to 2.5% long-run) at a 7.7% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.9%/yr | 8.7% | $36.81 |
| Base case | 8.9%/yr | 7.7% | $52.07 |
| Optimistic | 11.9%/yr | 6.7% | $76.10 |
| Analyst DCF (FMP) | independent reference — different model | $71.72 | |
Current Price
$33.90
Market-Implied Growth
+0.1%/yr
vs +6.2% 5Y actual
Model Scenario Range
$36.81 – $76.10
model output — not a price target
HAL 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 HAL (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 · 0.84B shares · net debt $5.0B
Estimated Fair Value
$67.38
+98.8% vs $33.90
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $33.90; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.7% | $93.73 | $104 | $118 | $136 | $163 |
| 6.7% | $72.98 | $78.99 | $86.43 | $95.88 | $108 |
| 7.7% | $59.01 | $62.83 | $67.38 | $72.91 | $79.75 |
| 8.7% | $48.99 | $51.56 | $54.56 | $58.07 | $62.27 |
| 9.7% | $41.47 | $43.28 | $45.35 | $47.72 | $50.47 |
About Halliburton Company
Halliburton Company (HAL) is a global supplier of products and services tailored for the energy sector. Its operations are structured into two primary divisions: Completion and Production, and Drilling and Evaluation. The Completion and Production segment focuses on enhancing well output through techniques like stimulation and sand control. It provides cementing services for well integrity, including casing and bonding, alongside a range of specialized downhole completion tools such as intelligent well systems, liner hangers, and multilateral solutions. This segment also supports production with offerings like coiled tubing, hydraulic workover units, pumping, and nitrogen services, in addition to managing pipeline and process services from initial setup (pre-commissioning, commissioning) through ongoing maintenance and eventual retirement (decommissioning). Furthermore, it supplies electrical submersible pumps and delivers artificial lift solutions. The Drilling and Evaluation segment offers a comprehensive suite of drilling fluids, including systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services. It also provides chemicals and associated services for oilfield completion, production, and downstream water and process treatment. This division includes advanced drilling systems, wireline and perforating services encompassing open-hole logging and cased-hole slickline operations, and a variety of drill bits (e.g., roller cone, fixed cutter), hole enlargement tools, and coring services. Moreover, it leverages cloud-based digital services and artificial intelligence on an open architecture to deliver subsurface insights, streamline well construction, and optimize reservoir and production management. Specialized testing and subsea services are also offered for reservoir information analysis and optimization strategies, alongside project management and integrated asset management services. Founded in 1919, Halliburton Company maintains its headquarters in Houston, Texas.
- Sector
- Energy
- Industry
- Oil & Gas Equipment & Services
- CEO
- Jeffrey Allen Miller