Baker Hughes Company provides integrated oilfield products, services, and digital solutions worldwide. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.
BKR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Baker Hughes Co. To summarize, we found that Baker Hughes Co ranked in the 38th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Baker Hughes Co ended up being:
The company's compound free cash flow growth rate over the past 0.98 years comes in at -0.06%; that's greater than just 20.89% of US stocks we're applying DCF forecasting to.
Baker Hughes Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 13.95% of tickers in our DCF set.
As a business, Baker Hughes Co experienced a tax rate of about 36% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 90.72% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BKR, try TNP, EQNR, TGA, HLX, and MTRX.