Is Baker Hughes Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Baker Hughes Co. moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued based on its key ratios, including 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 P/E 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 shown impressive returns over multiple periods, with a 1Y return of 22.51% compared to the S&P 500's 14.08%, and a remarkable 5Y return of 243.84% against the S&P 500's 91.29%. This performance reinforces the notion that the stock is currently undervalued, as it has outpaced the benchmark significantly over the longer term.