Slb N.V. (SLB) Intrinsic Value & DCF Valuation
Oil & Gas Equipment & Services · NYSE
Current Price
$56.06
Intrinsic Value
$49.25
-13.8% margin of safety
What Is Slb N.V.'s Intrinsic Value?
As of 2026-09-11, the base-case DCF model estimates the intrinsic value of Slb N.V. (SLB) at $49.25 per share, compared with a market price of $56.06, a margin of safety of -13.8%. The base case assumes 6.7% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $43.14 to $56.46. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Slb N.V. (SLB) Undervalued?
At $56.06, SLB trades about 13.8% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Global Scale and Integrated Services
SLB operates worldwide, offering a comprehensive suite of services from exploration to production. This extensive reach and integrated offering create significant barriers to entry for smaller competitors.
↑Technological Innovation and R&D
The company invests heavily in research and development, leading to proprietary technologies and specialized equipment. This innovation provides a competitive edge and drives efficiency for clients.
↑Long-Term Customer Relationships
SLB has established deep, long-standing relationships with major oil and gas companies. These partnerships are built on trust, performance, and a deep understanding of client needs, fostering loyalty.
INVESTMENT RISKS
↓Commodity Price Volatility
The demand for SLB's services is directly tied to oil and gas prices. Significant downturns in commodity prices can lead to reduced exploration and production spending, impacting SLB's revenue.
↓Energy Transition and Decarbonization
The global shift towards renewable energy sources poses a long-term risk to traditional oil and gas services. SLB's ability to adapt and diversify into new energy sectors will be crucial.
↓Regulatory and Environmental Scrutiny
The oil and gas industry faces increasing regulatory oversight and environmental concerns. Stricter regulations or environmental liabilities could increase operational costs and limit growth opportunities.
Base case
SLB base case valuation
Intrinsic Value
$49.25
Margin of safety
-13.8%
Expected annual return
-2.6%
Base case assumptions: 6.7% annual growth, 10.0% discount rate, 18.27x exit multiple, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SLB valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Slb N.V. respond.
Open DCF Calculator for SLBCompany Overview
SLB N.V. engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; stimulation services to restore or enhance well productivity through hydraulic fracturing, matrix stimulation, and water treatment; and intervention services to oil and gas operators. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift; supplies packers, safety valves, sand control technology, and various intelligent systems; midstream production systems; valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. SLB N.V. was formerly known as Schlumberger Limited and change its name to SLB N.V. in October 2025. The company was founded in 1926 and is based in Houston, Texas.
Financial Metrics — SLB Stock Valuation Data
Revenue/Share (TTM)
$24.26
FCF/Share (TTM)
$3.04
ROIC (TTM)
9.2%
ROE (TTM)
11.8%
P/FCF
18.3x
EV/EBITDA
13.0x
FCF Yield
5.47%
Debt/Equity
0.49x
On a trailing twelve-month basis, SLB generates free cash flow per share of $3.04 alongside a ROIC of 9.2%, both central inputs for a DCF valuation. Its P/FCF ratio of 18.3x and FCF yield of 5.47% then frame how SLB is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of SLB?
Slb N.V. currently generates $3.04 in free cash flow per share. At the current price of $56.06, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is SLB undervalued?
SLB trades at a P/FCF ratio of 18.3x with a free cash flow yield of 5.47%. This P/FCF is in a moderate range. However, whether SLB is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value SLB stock using DCF?
To perform a DCF valuation on Slb N.V.: (1) Start with the trailing free cash flow per share ($3.04) as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Equipment & Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SLB's risk profile — with a debt-to-equity of 0.49x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to SLB?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Slb N.V., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Oil & Gas Equipment & Services trends, then discounting those amounts to today's dollars. SLB's ROIC of 9.2% shows moderate capital returns.
How does WACC affect SLB stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SLB, with a debt-to-equity ratio of 0.49x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See SLB PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value SLB with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.