SLB N.V. (SLB) Stock Valuation — DCF Analysis
Oil & Gas Equipment & Services · NYSE
Current Price
$56.18
Intrinsic Value
$69.38
+19.0% 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 valuation
A base case discounted cash flow model for SLB estimates an intrinsic value of about $69.38 per share, against a current price of $56.18. The model assumes 9.1% annual free cash flow growth, a 10.0% discount rate, and a 18x exit multiple.
Intrinsic Value
$69.38
Margin of safety
+19.0%
Expected annual return
+4.3%
Base case assumptions: 9.1% annual growth, 10.0% discount rate, 18x exit multiple, 5 year projection. Data as of 2026-06-12.
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. 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 Stock Valuation Data
Revenue/Share (TTM)
$23.98
FCF/Share (TTM)
$3.12
ROIC (TTM)
10.0%
ROE (TTM)
13.5%
P/FCF
18.0x
EV/EBITDA
13.9x
FCF Yield
5.57%
Debt/Equity
0.44x
Based on trailing twelve-month data, SLB shows a free cash flow per share of $3.12 and a ROIC of 10.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 18.0x and FCF yield of 5.57% are important context metrics when evaluating SLB's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of SLB?
SLB N.V. currently generates $3.12 in free cash flow per share. At the current price of $56.18, 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 18.0x with a free cash flow yield of 5.57%. 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 ($3.12) 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 0.44x, 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 10.0% 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 0.44x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.9x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.