Baker Hughes Company (BKR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-6.9%

$50.49

vs $54.22 price

Levered DCF

$56.89

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.58

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.38×	13.67×	17.71×	-48.41×	-89.11×	-1.42×	111.43×	46.74×
P/B	2.39×	2.43×	2.24×	2.02×	1.34×	1.09×	0.65×	0.52×
P/S	1.62×	1.47×	1.35×	1.38×	0.97×	0.68×	0.6×	0.4×
EV / EBITDA	11.3×	9.49×	9.56×	24.96×	12.39×	8.84×	7.31×	5.65×
Gross margin	23.6%	23.3%	23.1%	23.4%	22.1%	18.0%	18.6%	17.4%
Operating margin	12.8%	12.2%	10.4%	8.9%	6.4%	3.2%	4.5%	3.1%
Net margin	9.3%	10.7%	7.6%	-2.8%	-1.1%	-48.0%	0.5%	0.9%
Current ratio	1.36×	1.32×	1.25×	1.32×	1.65×	1.61×	1.52×	1.66×
Debt / equity	0.38×	0.36×	0.39×	0.46×	0.45×	0.59×	0.3×	0.42×
Interest coverage	16.02×	17.08×	12.22×	7.5×	4.38×	2.55×	4.53×	3.14×
Dividend yield	2.0%	2.0%	2.3%	2.5%	3.0%	3.5%	2.8%	3.5%
Payout ratio	35.2%	28.1%	40.5%	-120.8%	-270.3%	-4.9%	308.6%	161.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.7%	17.6%	12.6%	-4.2%	-1.5%	-77.1%	0.6%	1.1%
Return on invested capital	11.6%	12.3%	8.1%	-208.8%	-3.9%	2.3%	0.9%	0.8%
Return on assets	6.3%	7.8%	5.3%	-1.8%	-0.6%	-26.1%	0.2%	0.4%
Free cash flow yield	5.6%	5.0%	5.3%	3.8%	9.2%	3.7%	8.1%	8.4%
Earnings yield	5.8%	7.3%	5.6%	-2.1%	-1.1%	-70.6%	0.9%	2.1%
Enterprise value	$48.4B	$43.7B	$37.8B	$33.3B	$22.7B	$17.6B	$17.6B	$12.7B
Net debt / EBITDA	0.8×	0.58×	0.85×	3.12×	1.57×	1.76×	1.4×	1.6×
Cash conversion cycle (days)	94	100	113	109	106	118	105	107