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:
We started the process of determining a valid price forecast for Baker Hughes Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Baker Hughes Co ranked in the 66th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Baker Hughes Co ended up being:
Baker Hughes Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Baker Hughes Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -39.9. This coverage rate is greater than that of only 3.39% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Baker Hughes Co has a reliance on debt greater than merely 20.13% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Baker Hughes Co? See GMLP, FET, SMLP, PARR, and HP.