Is SLB overvalued or undervalued?

As of 25 April 2025, the valuation grade for SLB has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on key financial ratios, including a P/E ratio of 10, a Price to Book Value of 2.41, and an EV to EBITDA of 6.91. In comparison, its peer Baker Hughes Co. has a P/E ratio of 12.82 and an EV to EBITDA of 8.85, highlighting SLB's relative overvaluation.
Additionally, SLB's PEG ratio stands at 0.70, suggesting that despite its high valuation, growth expectations may not justify the price. The company's recent performance has also been underwhelming, with a year-to-date return of -12.02%, significantly lagging behind the S&P 500's 2.44%. Overall, SLB appears to be overvalued in the current market context.