SLB
SLB N.V.
$57.28
Oil & Gas E&P
85%
FCF at Price Deck × Multiple
Moderate
·
Conviction
Overvalued
Trading 28.5% above fair value
You pay
$57.28
Bear
$23.89
Fair
$44.58
Bull
$70.60
Bear
$23.89
-58.3%
FCF $3716M × 10x
Fair
$44.58
-22.2%
FCF $4795M × 13x
Bull
$70.60
+23.2%
FCF $5874M × 16x
Key Value Driver
Oil price assumption ($75/bbl base case)
Implied Market Multiple
19.5x
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 $60.00 from 66 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $44.58 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 $60.00 (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