Slb N.V. (SLB) Intrinsic Value & DCF Valuation
Oil & Gas Equipment & Services · NYSE
Current Price
$48.87
Intrinsic Value
$41.65
-17.3% margin of safety
What Is Slb N.V.'s Intrinsic Value?
As of 2026-07-30, the base-case DCF model estimates the intrinsic value of Slb N.V. (SLB) at $41.65 per share, compared with a market price of $48.87, a margin of safety of -17.3%. The base case assumes 3.1% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $36.45 to $47.79. 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 the current price of $48.87, SLB 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
↑Global Scale and Integrated Solutions
SLB's extensive global operational footprint and ability to offer a comprehensive suite of integrated solutions across the entire oilfield lifecycle create significant barriers to entry for smaller competitors.
↑Technological Innovation and R&D Investment
Consistent investment in research and development fuels proprietary technologies and digital solutions, enhancing operational efficiency and offering unique value propositions to clients.
↑Long-Term Customer Relationships
Established, multi-year contracts, such as the recent Kuwait Innovation Deal, demonstrate deep customer loyalty and embed SLB within clients' long-term operational strategies.
INVESTMENT RISKS
↓Geopolitical Instability and Regulatory Changes
The oil and gas industry is highly sensitive to geopolitical events and evolving environmental regulations, which can impact exploration, production, and operational costs.
↓Competition from Specialized and Digital Players
Emerging specialized service providers and digitally native companies could challenge SLB's market share with more agile and cost-effective solutions.
↓Execution Risk on Large-Scale Projects
The successful execution of complex, multi-year international projects requires significant operational expertise and carries inherent risks of delays or cost overruns.
Base case
SLB base case valuation
Intrinsic Value
$41.65
Margin of safety
-17.3%
Expected annual return
-3.1%
Base case assumptions: 3.1% annual growth, 10.0% discount rate, 15x exit multiple, 5 year projection. Data as of 2026-07-30.
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)
$3.17
ROIC (TTM)
9.2%
ROE (TTM)
11.7%
P/FCF
15.4x
EV/EBITDA
11.4x
FCF Yield
6.51%
Debt/Equity
0.47x
On a trailing twelve-month basis, SLB generates free cash flow per share of $3.17 alongside a ROIC of 9.2%, both central inputs for a DCF valuation. Its P/FCF ratio of 15.4x and FCF yield of 6.51% 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 $3.17 in free cash flow per share. At the current price of $48.87, 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 15.4x with a free cash flow yield of 6.51%. 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 ($3.17) 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 0.47x, 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 0.47x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 11.4x, 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.