Baker Stock Valuation

BKR -  USA Stock  

USD 28.47  0.19  0.66%

How much is Baker Hughes A worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Baker Hughes, is its stock price multiplied by the total number of shares outstanding, calculating Baker Hughes' enterprise value requires a different approach. It uses Baker Hughes' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Baker Hughes Free Cash Flow is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Free Cash Flow of 1.83 Billion. As of 06/24/2022, Tangible Asset Value is likely to grow to about 26.7 B, while Enterprise Value is likely to drop slightly above 26.9 B.
Baker Hughes A shows a prevailing Real Value of $26.33 per share. The current price of the firm is $28.47. At this time, the firm appears to be overvalued. Our model approximates the value of Baker Hughes A from analyzing the firm fundamentals such as Profit Margin of 1.48 %, current valuation of 33.73 B, and Return On Equity of 2.10 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Baker Hughes Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Baker Hughes's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Baker Most Recent Valuation Data

Price Book
1.91
Price Sales
1.51
Forward Annual Dividend Yield
0.024
EBITDA
2.8 B
Dividend Share
0.72
Ex Dividend Date
2022-05-27
Beta
1.48
Overvalued
Today 28.47
Please note that Baker Hughes' price fluctuation is very steady at this time. Calculation of the real value of Baker Hughes A is based on 3 months time horizon. Increasing Baker Hughes' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Baker Hughes A is useful when determining the fair value of the Baker stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Baker Hughes. Since Baker Hughes is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Baker Stock. However, Baker Hughes' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
26.33
Real Value
29.19
Upside
Estimating the potential upside or downside of Baker Hughes A helps investors to forecast how Baker stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Baker Hughes more accurately as focusing exclusively on Baker Hughes' fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
0.570.650.75
Details
Hype
Prediction
LowEstimated ValueHigh
25.8128.6731.53
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.230.240.25
Details
17 Analysts
Consensus
LowTarget PriceHigh
26.0029.5934.50
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Baker Hughes' intrinsic value based on its ongoing forecasts of Baker Hughes' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Baker Hughes' closest peers. When choosing an evaluation method for Baker Hughes A, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Baker Valuation Drivers Correlation

Many accounts on the financial statements of Baker Hughes A are highly interrelated and sometimes correlated. Consequently, when conducting Baker's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Baker
Click cells to compare fundamentals

Baker Valuation Trend

Knowing Baker Hughes' actual value is paramount for traders to make sound investment determinations. Baker Hughes' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Baker Hughes' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Baker Hughes' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Baker Market Cap

Baker Hughes A is number one stock in market capitalization category among related companies. Market capitalization of Oil & Gas Equipment & Services industry is currently estimated at about 74.76 Billion. Baker Hughes totals roughly 24.93 Billion in market capitalization claiming about 33% of all equities under Oil & Gas Equipment & Services industry.
Capitalization  Valuation  Workforce  Revenue  Total debt

Baker Hughes Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Baker Hughes's current stock value. Our valuation model uses many indicators to compare Baker Hughes value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Baker Hughes competition to find correlations between indicators driving Baker Hughes's intrinsic value. More Info.
Baker Hughes A is number one stock in beta category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.81  of Price to Sales per Beta. The ratio of Beta to Price to Sales for Baker Hughes A is roughly  1.23 . As of 06/24/2022, Price to Sales Ratio is likely to drop to 1.19. Comparative valuation analysis is a catch-all model that can be used if you cannot value Baker Hughes by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Baker Hughes' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Baker Hughes' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Baker Hughes' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Baker Hughes and how it compares across the competition.

About Baker Hughes Valuation

The equity valuation mechanism determines the current worth of Baker Hughes A on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Baker Hughes A. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Baker Hughes A based exclusively on its fundamental and basic technical indicators. By analyzing Baker Hughes's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Baker Hughes's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Baker Hughes. We calculate exposure to Baker Hughes's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Baker Hughes's related companies.
Last ReportedProjected for 2022
Gross ProfitB3.8 B
Profit Margin(0.011) (0.0118) 
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes operates under Oil Gas Equipment Services classification in the United States and is traded on NASDAQ Exchange. It employs 55000 people.

Baker Hughes Quarterly Enterprise Value

40.28 Billion

Share
Baker Hughes' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Baker Hughes' value is low or high relative to the company's performance and growth projections. Determining the market value of Baker Hughes can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Baker Hughes represents a small ownership stake in the entity. As a stockholder of Baker, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Baker Hughes Dividends Analysis For Valuation

As of 06/24/2022, Dividend Yield is likely to grow to 0.0316, while Payment of Dividends and Other Cash Distributions is likely to drop (638.7 M). . Baker Hughes Earning Before Interest and Taxes EBIT is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Earning Before Interest and Taxes EBIT of 838 Million. As of 06/24/2022, Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to grow to about 2.1 B, while Earnings per Basic Share are likely to drop (0.29) .
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-592 M-638.7 M
Dividend Yield 0.03  0.0316 
Dividends per Basic Common Share 0.83  0.82 
There are various types of dividends Baker Hughes can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Baker shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Baker Hughes A directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Baker pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Baker Hughes by the value of the dividends paid out.

Baker Hughes Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Baker Hughes does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.09
Revenue Growth1.10%
Payout Ratio171.43%
Enterprise Value To Ebitda12.18
Enterprise Value To Revenue1.64

Baker Hughes Current Valuation Indicators

Valuation refers to the process of determining the present value of Baker Hughes A and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Baker we look at many different elements of the entity such as Baker's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Baker Hughes' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Baker Hughes' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Baker Hughes, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Baker Hughes' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Baker Hughes' worth.
Continue to Trending Equities. Note that the Baker Hughes A information on this page should be used as a complementary analysis to other Baker Hughes' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running Baker Hughes A price analysis, check to measure Baker Hughes' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Baker Hughes is operating at the current time. Most of Baker Hughes' value examination focuses on studying past and present price action to predict the probability of Baker Hughes' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Baker Hughes' price. Additionally, you may evaluate how the addition of Baker Hughes to your portfolios can decrease your overall portfolio volatility.
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Is Baker Hughes' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Baker Hughes. If investors know Baker will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Baker Hughes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.65
Market Capitalization
31.1 B
Quarterly Revenue Growth YOY
0.011
Return On Assets
0.0292
Return On Equity
0.021
The market value of Baker Hughes A is measured differently than its book value, which is the value of Baker that is recorded on the company's balance sheet. Investors also form their own opinion of Baker Hughes' value that differs from its market value or its book value, called intrinsic value, which is Baker Hughes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Baker Hughes' market value can be influenced by many factors that don't directly affect Baker Hughes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Baker Hughes' value and its price as these two are different measures arrived at by different means. Investors typically determine Baker Hughes value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Baker Hughes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.