The Discounted Cash Flow (DCF) valuation of Baker Hughes Co (BKR) is 45.09 USD. With the latest stock price at 40.70 USD, the upside of Baker Hughes Co based on DCF is 10.8%.
Based on the latest price of 40.70 USD and our DCF valuation, Baker Hughes Co (BKR) is a buy. Buying BKR stocks now will result in a potential gain of 10.8%.
Range | Selected | |
WACC / Discount Rate | 7.8% - 10.0% | 8.9% |
Long-term Growth Rate | 1.0% - 3.0% | 2.0% |
Fair Price | 34.92 - 63.97 | 45.09 |
Upside | -14.2% - 57.2% | 10.8% |
(USD in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 27,829 | 27,868 | 29,877 | 31,373 | 32,180 | 33,128 |
% Growth | 9% | 0% | 7% | 5% | 3% | 3% |
Cost of goods sold | (21,916) | (21,508) | (22,597) | (23,254) | (23,375) | (23,583) |
% of Revenue | 79% | 77% | 76% | 74% | 73% | 71% |
Selling, G&A expenses | (2,458) | (2,461) | (2,639) | (2,771) | (2,842) | (2,926) |
% of Revenue | 9% | 9% | 9% | 9% | 9% | 9% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (190) | (190) | (204) | (214) | (220) | (226) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Tax expense | (257) | (1,001) | (1,198) | (1,386) | (1,551) | (1,726) |
Tax rate | 8% | 27% | 27% | 27% | 27% | 27% |
Net profit | 3,008 | 2,707 | 3,239 | 3,748 | 4,192 | 4,667 |
% Margin | 11% | 10% | 11% | 12% | 13% | 14% |