QualityDipStocks / Consumer Discretionary · Oil and Gas Field Machinery
Baker Hughes Company BKR
On dip watch: 21% below its 52-week high.
A quality company trading well below our fair value estimate.
- Fair value est.
- $73.91+34%
- Market Value
- forming
- Off 52-wk high
- −21%
- Risk vs market
- Lowbeta 0.64
5 bullish · 2 bearish See why
Key levels
Every level vs today’s $55.23
- 52-wk lowlowest close, 1 year$44.47−19.5%
- PriceFri Oct 30 close$55.23you are here
- 52-wk highhighest close, 1 year$69.67+26.1%
- Fair value est.base case$73.91+33.8%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 9.4% ±2 points. Bear = 10.5% and 7.4%; bull = 8.5% and 11.4% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
Cyclical / peak cash flow — treat with care
What the price implies To be worth today’s price, BKR’s free cash flow would need to grow about 4% a year for five years; our estimate uses 9%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much BKR moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.7× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.64
- Volatility
- 34% vs 13% SPY
- Correlation SPY
- 0.24
- Correlation QQQ
- 0.23
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
GrowthDiluted EPS grew 56% to $2.98 in FY2024.
Cash returnsFree cash flow grew 55% over the last 12 months vs the 12 months before.
ValuationOur DCF fair value estimate is $73.91, 34% above the price (cyclical or peak cash flow, so treat with care).
ProfitabilityOperating margin widened to 11.1% in FY2024 from 5.6% in FY2022 (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 2 of 5
GrowthSales grew 3.7% over the last 12 months, below the 7.0% median for the 175 Consumer Discretionary companies we cover.
RiskCyclical business: one strong year of cash flow can make it look cheaper than it is.
Who’s talking about it
Notable investors, executives, analysts and public figures on Baker Hughes Company in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Consumer Discretionary
All fundamentals
P/E 18.9 · FCF yield 5.9% · ROE 15%
Valuation
- P/E
- 18.9×Consumer Discretionary median 20.9×
- Price / FCF
- 17.0×
- FCF yield
- 5.9%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 1.91×
- Price / book
- 2.72×
- Market cap
- $54.8Bprice × diluted shares
- Enterprise value
- $68.3B
Growth
- Revenue, 12 months
- $28.7B
- Sales growth, 12 months
- +3.7%vs the 12 months before
- Sales growth, 3 yrs
- +9.4%/yrfrom FY2022
- Diluted EPS, 12 months
- n/anot reported in its SEC filings
- EPS growth, last FY
- +56.0%
- Net income, 12 months
- $2.9B
- Net income growth
- +0%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 10.1%
- FCF margin
- 11.2%
- Return on equity
- 15%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $4.1B
- Total debt
- $17.5B
- Net cash
- −$13.4B
- Debt / equity
- 0.87×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $3.2B
- FCF growth, 12 months
- +55%
- Dividend yield
- 1.66%$911M paid
- Payout ratio
- 31%
- Buybacks, 12 months
- $0
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- $209M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Baker Hughes Company’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $73.91 · FCF value $82.44
Cyclical / peak cash flow — treat with care
Assumes 9.4% growth for 5 years (revenue grew 9.4% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.25 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 28, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 46 · 5 days −1.1%
The business
FCF $3.2B · Sales +14%
- Free cash flow, 12 months$3.2B
- Free-cash-flow yield6.0%
- Free-cash-flow margin11%
- Gross margin24%
- Operating margin12%
- Return on invested capital7%
- Return on equity15%
- Sales growth (latest quarter vs year-ago quarter)+14%
- Net debt / EBITDA2.8×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when BKR fires a reversal signal
One text when a published rule fires on BKR or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.