Is Halliburton Co. overvalued or undervalued?
As of January 31, 2025, Halliburton Co. is fairly valued with a P/E ratio of 9, an EV to EBITDA of 5.62, and strong operational efficiency reflected in ROCE and ROE of approximately 22.84% and 22.96%, despite a year-to-date stock performance lagging behind the S&P 500.
As of 31 January 2025, Halliburton Co. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 9, an EV to EBITDA of 5.62, and a Price to Book Value of 2.04. In comparison to its peers, Halliburton's P/E ratio of 9.98 is competitive, while its EV to EBITDA ratio of 6.16 for a peer indicates it is positioned well within the industry. Notably, Halliburton's ROCE stands at 22.84% and ROE at 22.96%, reflecting strong operational efficiency. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -23.61% compared to the index's 2.44%, the valuation metrics suggest that Halliburton is currently fairly valued.
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