Halliburton provides a range of services and products to the upstream oil and natural gas industry worldwide. The company operates through two segments, Completion and Production, and Drilling and Evaluation. The company was founded in 1919 and is based in Houston, Texas.
HAL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HAL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Halliburton Co ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Halliburton Co ended up being:
Halliburton Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.22. This coverage rate is greater than that of merely 9.57% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 65.36% stocks in the Energy sector that generate 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 HAL, try EPM, CLMT, RDS.A, BKR, and EQNR.
HOUSTON--(BUSINESS WIRE)--Halliburton Company (NYSE: HAL) today announced the creation of Halliburton Labs – a collaborative environment where entrepreneurs, academics, investors, and industrial labs come together to advance cleaner, affordable energy. Halliburton Labs, led by Executive Director Scott Gale, will accelerate the growth of innovative, early-stage companies by providing access to Halliburton’s lab facilities, technical expertise and business network. Located at the Company’s Housto
Jul.30 -- Halliburton Co. Chief Executive Officer Jeff Miller says the company will continue to focus on improving capital efficiency and reducing costs. He speaks with Bloomberg's Alix Steel and Guy Johnson on "Bloomberg Markets."
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