QualityDipStocks / Energy · Oilfield Services/Equipment
SLB SLB
Not in a dip by our rules: 11% below its 52-week high.
A quality company trading below our fair value estimate.
- Fair value est.
- $65.07+21%
- Market Value
- $53.54at the price
- Off 52-wk high
- −11%
- Risk vs market
- Below marketbeta 0.71
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $53.74
- 52-wk lowlowest close, 1 year$35.19−34.5%
- Market Valueavg paid since Oct 23$53.54−0.4%
- PriceFri Oct 30 close$53.74you are here
- 52-wk highhighest close, 1 year$60.10+11.8%
- Fair value est.base case$65.07+21.1%
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 8.3% ±2 points. Bear = 10.5% and 6.3%; bull = 8.5% and 10.3% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
Cyclical / peak cash flow — treat with care
What the price implies To be worth today’s price, SLB’s free cash flow would need to grow about 5% a year for five years; our estimate uses 8%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much SLB 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 a bit less than the market, but its own price swings are 2.9× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.71
- Volatility
- 37% vs 13% SPY
- Correlation SPY
- 0.25
- Correlation QQQ
- 0.17
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityOperating margin widened to 19.7% in FY2023 from 14.7% in FY2021 (SEC filings).
ValuationFree-cash-flow yield of 5.7% (price / FCF 17.7×): $4.6B of free cash in the last 12 months.
ValuationOur DCF fair value estimate is $65.07, 21% above the price (cyclical or peak cash flow, so treat with care).
GrowthSales grew 8.3% a year over the last three fiscal years, above the −7.3% median for the 44 Energy companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationP/E of 26.0× is 67% above its own average of 15.5× at the last 3 fiscal year-ends.
GrowthDiluted EPS fell 24% to $2.35 in FY2025.
ProfitabilityReturn on equity fell 8 points in two fiscal years, to 13% in FY2025.
ValuationP/E of 26.0× vs a 16.2× median for the 43 Energy 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 SLB 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 Energy
All fundamentals
P/E 26.0 · FCF yield 5.7% · ROE 12%
Valuation
- P/E
- 26.0×3-yr-end avg 15.5× · Energy median 16.2×
- Price / FCF
- 17.7×
- FCF yield
- 5.7%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 2.18×
- Price / book
- 3.09×
- Market cap
- $80.4Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $36.9B
- Sales growth, 12 months
- +4.7%vs the 12 months before
- Sales growth, 3 yrs
- +8.3%/yrfrom FY2022
- Diluted EPS, 12 months
- $2.06
- EPS growth, last FY
- −24.4%
- Net income, 12 months
- $3.1B
- Net income growth
- −15%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
- 8.4%
- FCF margin
- 12.4%
- Return on equity
- 12%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- n/anot reported in its SEC filings
- Total debt
- $11.1B
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- 0.43×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $4.6B
- FCF growth, 12 months
- +12%
- Dividend yield
- 2.15%$1.7B paid
- Payout ratio
- 56%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +0.6%diluted shares vs a year ago
- Stock-based comp
- $326M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From SLB’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 $65.07 · MV $53.54 · FCF value $72.25
Cyclical / peak cash flow — treat with care
Assumes 8.3% growth for 5 years (revenue grew 8.3% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.04 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. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 62 · 5 days +1.3%
The business
FCF $4.3B · Sales +6%
- Free cash flow, 12 months$4.3B
- Free-cash-flow yield5.4%
- Free-cash-flow margin12%
- Gross margin16%
- Operating margin14%
- Return on invested capital10%
- Return on equity12%
- Sales growth (latest quarter vs year-ago quarter)+6%
- Net debt / EBITDA1.5×
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 SLB fires a reversal signal
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