Is SLB overvalued or undervalued?

Oct 20 2025 12:20 PM IST
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As of October 17, 2025, SLB is considered undervalued with a P/E ratio of 10 and strong financial metrics, including a 5-year return of 117.97%, a ROE of 25.15%, and a high dividend yield, making it an attractive investment compared to Baker Hughes Co. and the S&P 500.
As of 17 October 2025, the valuation grade for SLB has moved from expensive to attractive, indicating a shift towards being undervalued. The company is currently considered undervalued, supported by a P/E ratio of 10, a PEG ratio of 0.70, and an EV to EBITDA ratio of 6.91. In comparison, Baker Hughes Co. has a higher P/E of 14.48 and an EV to EBITDA of 10.01, reinforcing SLB's relative attractiveness in the market.

Despite recent challenges reflected in its stock performance, SLB's 5-year return of 117.97% outpaces the S&P 500's 91.29%, suggesting potential for recovery and growth. The company’s strong ROE of 25.15% and a high dividend yield of 252.67% further highlight its financial strength, making it an appealing investment opportunity.
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