Is Baker Hughes Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Baker Hughes Co. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.23, and an EV to EBITDA ratio of 8.48, which are favorable compared to its peers. For instance, SLB has a higher P/E ratio of 12.04 and an EV to EBITDA of 8.41, suggesting that Baker Hughes Co. is trading at a discount relative to its industry.
In terms of performance, Baker Hughes Co. has delivered a 1-year return of 22.51%, significantly outperforming the S&P 500's return of 14.08% over the same period, reinforcing the notion that the stock is undervalued. With a solid ROCE of 18.66% and a dividend yield of 2.35%, the company presents a compelling investment opportunity.