With a one year PEG ratio of 0.14, Schlumberger Limited is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than merely 3.6% of US stocks.
Of note is the ratio of Schlumberger Limited's sales and general administrative expense to its total operating expenses; only 2.46% of US stocks have a lower such ratio.
Over the past twelve months, SLB has reported earnings growth of -833.33%, putting it ahead of only 2.23% of US stocks in our set.
Stocks that are quantitatively similar to SLB, based on their financial statements, market capitalization, and price volatility, are EOG, ORAN, RCI, MET, and BKR.
Schlumberger is the world's leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. The company was founded in 1926 and is based in Paris, France.
SLB 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 Schlumberger Limited. To summarize, we found that Schlumberger Limited ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 71.67%. As for the metrics that stood out in our discounted cash flow analysis of Schlumberger Limited, consider:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.11% -- higher than just 13.18% of stocks in our DCF forecasting set.
As a business, SLB is generating more cash flow than 90.79% of positive cash flow stocks in the Energy.
Schlumberger Limited's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -38.64. This coverage rate is greater than that of merely 3.7% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 SLB, try GEOS, VLO, AROC, PNRG, and VTOL.
While the exchange of Schlumberger’s (SLB) OneStim U.S. fracking unit to hydraulic fracturing specialist Liberty Oilfield Services (LBRT) for 37% of Liberty’s equity exemplifies a welcome trend of consolidating oversupply (of hydraulic fracturing horsepower), the time is not right for investors to buy into Liberty. Long-term prospects for U.S. oilfield...
Laura Starks on Seeking Alpha | September 14, 2020
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