SLB N.V. (SLB) Stock Valuation — PE Analysis
Oil & Gas Equipment & Services · NYSE
Current Price
$56.18
PE Ratio (TTM)
25.5x
Intrinsic Value
$65.77
+14.6% margin of safety
COMPETITIVE MOAT
↑Digital Portfolio Expansion
Acquisition of Tachyus enhances SLB's AI-powered reservoir optimization tools. This strengthens their digital offerings and recovery-focused solutions, creating a competitive edge.
↑AI Adoption Leadership
SLB is recognized as a top company adopting AI. This leadership position suggests advanced operational efficiencies and innovative service development.
↑Market Outperformance
SLB's stock has recently outpaced the broader market. This indicates strong investor confidence and positive market sentiment towards the company's performance.
INVESTMENT RISKS
↓Oil Price Volatility
Exxon's warning of potential oil price spikes to $150-160 per barrel creates significant market uncertainty. This volatility can impact demand for oilfield services.
↓Geopolitical Strait of Hormuz
The Strait of Hormuz trade is a critical factor for oil services. Geopolitical tensions in this region pose a direct risk to supply chains and operational stability.
↓Intense Industry Competition
The oil services sector is highly competitive, as evidenced by the ETF's performance. SLB faces ongoing pressure from peers to maintain market share and profitability.
Base case
SLB base case PE valuation
A base case PE valuation for SLB estimates a fair value of about $65.77 per share, against a current price of $56.18. The model assumes 9.1% annual earnings growth, a 26x target PE multiple, and a 10% discount rate.
Intrinsic Value
$65.77
Margin of safety
+14.6%
Expected annual return
+3.2%
Base case assumptions: 9.1% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SLB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for SLB N.V. respond.
Open PE Calculator for SLBCompany Overview
SLB N.V. operates as a global technology provider for the energy sector. The company's operations are organized into four key divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. SLB delivers a wide array of services, including the development of oil and gas fields, hydrocarbon production optimization, carbon management solutions, and the integration of interconnected energy infrastructures. It also specializes in reservoir interpretation and processing of exploration data, alongside offering solutions for well construction and enhancing production efficiency. Their expertise extends to evaluating subsurface geology and fluid dynamics. The firm provides stimulation services, such as hydraulic fracturing, matrix stimulation, and water treatment, designed to restore or boost well productivity for oil and gas operators. Additionally, they offer essential intervention services. Within drilling operations, SLB furnishes mud logging, directional drilling, measurement-while-drilling (MWD), and logging-while-drilling (LWD) services, complemented by comprehensive engineering support. They supply advanced drilling fluid systems and are involved in the design, manufacturing, and marketing of both roller cone and fixed cutter drill bits. Their portfolio further includes bottom-hole assembly and borehole enlargement technologies. The company provides end-to-end well planning and drilling services, encompassing engineering, supervision, logistics, procurement, and third-party contracting, along with drilling rig management solutions. This covers a range of drilling equipment and services, including land drilling rigs. For production, SLB offers artificial lift solutions, an assortment of packers, safety valves, sand control technologies, and various intelligent monitoring systems. Their offerings extend to midstream production systems, specialized valves, chokes, actuators, and surface trees. A significant part of their business is OneSubsea, which delivers integrated solutions, products, and services for subsea applications, such as wellheads, subsea trees, manifolds, flowline connectors, control systems, and other connection technologies. Historically known as Schlumberger Limited, the company is slated to formally adopt its new name, SLB N.V., in October 2025. Established in 1926, SLB N.V. maintains its corporate headquarters in Houston, Texas.
Financial Metrics — SLB PE Stock Valuation Data
PE Ratio (TTM)
25.5x
PEG Ratio
n/m
Earnings Yield
3.92%
ROE (TTM)
13.5%
Revenue/Share (TTM)
$23.98
Dividend Yield
2.06%
Debt/Equity
0.44x
Frequently Asked Questions
What is the PE ratio of SLB?
The trailing twelve-month PE ratio of SLB reflects how much investors pay per dollar of SLB N.V.'s earnings. This metric is most useful when compared to Oil & Gas Equipment & Services peers and the company's own historical range.
Is SLB overvalued based on PE ratio?
SLB's PE of 25.5x combined with a PEG ratio of -1.13 provides a growth-adjusted perspective. SLB has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Equipment & Services, a DCF analysis may be more appropriate.
How do I value SLB stock using PE ratio?
To value SLB N.V. using PE: (1) Compare the current PE (25.5x) against the Oil & Gas Equipment & Services median to assess relative pricing, (2) check the PEG ratio (-1.13) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SLB?
SLB's PEG ratio is -1.13, calculated by dividing the PE ratio (25.5x) by the expected earnings growth rate. Because SLB has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SLB stock valuation?
PE ratio gives a quick relative read — how SLB is priced versus Oil & Gas Equipment & Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SLB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value SLB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.