Halliburton Company (HAL) Intrinsic Value & DCF Valuation
Oil & Gas Equipment & Services · NYSE
Current Price
$35.34
Intrinsic Value
$30.26
-16.8% margin of safety
What Is Halliburton Company's Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Halliburton Company (HAL) at $30.26 per share, compared with a market price of $35.34, a margin of safety of -16.8%. The base case assumes 4.2% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $26.49 to $34.71. 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 Halliburton Company (HAL) Undervalued?
At the current price of $35.34, HAL trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Technological Innovation & R&D
Halliburton invests heavily in developing advanced technologies for oilfield services. This leads to proprietary solutions and a competitive edge in efficiency and performance.
↑Global Scale & Infrastructure
The company possesses a vast global network of facilities, equipment, and personnel. This allows for efficient deployment and support across diverse operating regions.
↑Customer Relationships & Switching Costs
Long-standing relationships with major oil and gas producers create high switching costs. Clients rely on Halliburton's integrated services and proven track record.
INVESTMENT RISKS
↓Commodity Price Sensitivity
Halliburton's revenue and profitability are directly tied to global oil and gas prices. Significant downturns can severely impact demand for its services.
↓Regulatory & Environmental Scrutiny
The oil and gas industry faces increasing environmental regulations and scrutiny. Changes in policy or stricter enforcement can increase operational costs and limit growth opportunities.
↓Execution & Project Management
Successful execution of complex, large-scale projects is critical. Any operational failures or delays can lead to financial penalties and reputational damage.
Base case
HAL base case valuation
Intrinsic Value
$30.26
Margin of safety
-16.8%
Expected annual return
-3.1%
Base case assumptions: 4.2% annual growth, 10.0% discount rate, 17.11x exit multiple, 5 year projection. Data as of 2026-08-21.
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 HAL valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Halliburton Company respond.
Open DCF Calculator for HALCompany Overview
Halliburton Company (HAL) is a global supplier of products and services tailored for the energy sector. Its operations are structured into two primary divisions: Completion and Production, and Drilling and Evaluation. The Completion and Production segment focuses on enhancing well output through techniques like stimulation and sand control. It provides cementing services for well integrity, including casing and bonding, alongside a range of specialized downhole completion tools such as intelligent well systems, liner hangers, and multilateral solutions. This segment also supports production with offerings like coiled tubing, hydraulic workover units, pumping, and nitrogen services, in addition to managing pipeline and process services from initial setup (pre-commissioning, commissioning) through ongoing maintenance and eventual retirement (decommissioning). Furthermore, it supplies electrical submersible pumps and delivers artificial lift solutions. The Drilling and Evaluation segment offers a comprehensive suite of drilling fluids, including systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services. It also provides chemicals and associated services for oilfield completion, production, and downstream water and process treatment. This division includes advanced drilling systems, wireline and perforating services encompassing open-hole logging and cased-hole slickline operations, and a variety of drill bits (e.g., roller cone, fixed cutter), hole enlargement tools, and coring services. Moreover, it leverages cloud-based digital services and artificial intelligence on an open architecture to deliver subsurface insights, streamline well construction, and optimize reservoir and production management. Specialized testing and subsea services are also offered for reservoir information analysis and optimization strategies, alongside project management and integrated asset management services. Founded in 1919, Halliburton Company maintains its headquarters in Houston, Texas.
Financial Metrics — HAL Stock Valuation Data
Revenue/Share (TTM)
$26.76
FCF/Share (TTM)
$2.06
ROIC (TTM)
9.7%
ROE (TTM)
15.1%
P/FCF
17.1x
EV/EBITDA
8.6x
FCF Yield
5.84%
Debt/Equity
0.74x
On a trailing twelve-month basis, HAL generates free cash flow per share of $2.06 alongside a ROIC of 9.7%, both central inputs for a DCF valuation. Its P/FCF ratio of 17.1x and FCF yield of 5.84% then frame how HAL is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of HAL?
Halliburton Company currently generates $2.06 in free cash flow per share. At the current price of $35.34, 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 HAL undervalued?
HAL trades at a P/FCF ratio of 17.1x with a free cash flow yield of 5.84%. This P/FCF is in a moderate range. However, whether HAL 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 HAL stock using DCF?
To perform a DCF valuation on Halliburton Company: (1) Start with the trailing free cash flow per share ($2.06) 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 HAL's risk profile — with a debt-to-equity of 0.74x, 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 HAL?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Halliburton Company, 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. HAL's ROIC of 9.7% shows moderate capital returns.
How does WACC affect HAL stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HAL, with a debt-to-equity ratio of 0.74x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 8.6x, 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 HAL 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 HAL with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.