Is SLB overvalued or undervalued?

As of 4 August 2025, the valuation grade for SLB has moved from expensive to fair. Based on the current metrics, SLB appears to be fairly valued. The P/E ratio stands at 10, which is lower than its peer Baker Hughes Co. at 14.48, indicating a potential undervaluation relative to its competitor. Additionally, SLB's EV to EBITDA ratio is 6.91, compared to Baker Hughes Co.'s 10.01, further supporting the fair valuation perspective. The PEG ratio of 0.70 suggests that SLB is priced attractively relative to its growth expectations.
In terms of performance, SLB has underperformed the S&P 500 across multiple periods, with a year-to-date return of -9.39% compared to the S&P 500's 12.22%. This trend continues with a 1-year return of -16.13% against the S&P 500's 17.14%, highlighting the challenges SLB faces in the market despite its fair valuation.