SLB
Slb N.V.
$47.19
Oil & Gas E&P
85%
FCF at Price Deck × Multiple
Mild
·
Conviction
Overvalued
Trading 5.3% above fair value
You pay
$47.19
Bear
$24.02
Fair
$44.83
Bull
$70.99
Bear
$24.02
-49.1%
FCF $3716M × 10x
Fair
$44.83
-5.0%
FCF $4795M × 13x
Bull
$70.99
+50.4%
FCF $5874M × 16x
Key Value Driver
Oil price assumption ($75/bbl base case)
Implied Market Multiple
16.4x
Summary
Our base-case estimate uses a valuation based on free cash flow under different commodity price assumptions and a valuation multiple. We then blend that result with the average analyst price target of $60.71 from 66 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $44.83 per share.
Warnings
Where you think oil prices will settle long-term drives over 80% of this valuation. The biggest risk isn't the company itself — it's getting the commodity price wrong.
Wall Street's average price target is $60.71 (from 66 analysts). Our estimate is 40% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — commodity volumes do not compound
- Geopolitical premiums are real but historically temporary
- Reserve replacement ratio below 100% for 3 years is existential