Halliburton Company (HAL) Fair Value & PE Analysis
Oil & Gas Equipment & Services · NYSE
Current Price
$31.49
PE Ratio (TTM)
16.5x
Intrinsic Value
$31.79
+0.9% margin of safety
What Is Halliburton Company's Fair Value?
As of 2026-07-30, applying a 16.0x earnings multiple to Halliburton Company's (HAL) earnings per share of $1.92 yields a fair value estimate of $31.79 per share, versus a market price of $31.49.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $25.16 to $39.46. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · HAL intrinsic value (DCF view)
Is Halliburton Company (HAL) Overvalued?
At $31.49, HAL trades about 0.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Integrated Service Offering
Halliburton offers a comprehensive suite of oilfield services, from drilling to completion and production. This integration creates customer stickiness and operational efficiencies.
↑Technological Innovation & R&D
Significant investment in research and development allows Halliburton to offer advanced technologies. This drives differentiation and can lead to higher margins on specialized services.
↑Global Scale and Infrastructure
An extensive global footprint and established infrastructure provide a significant advantage. This allows for rapid deployment of services and deep understanding of diverse operating environments.
INVESTMENT RISKS
↓Commodity Price Volatility
Halliburton's business is highly sensitive to fluctuations in oil and gas prices. A sustained period of low prices can significantly reduce demand for its services.
↓Geopolitical and Regulatory Uncertainty
The oil and gas industry operates within a complex geopolitical landscape and faces evolving environmental regulations. These factors can impact exploration, production, and operational costs.
↓Intense Industry Competition
The oilfield services sector is highly competitive, with several large players vying for market share. This can lead to pricing pressures and limit pricing power.
Base case
HAL base case PE valuation
Intrinsic Value
$31.79
Margin of safety
+0.9%
Expected annual return
+0.2%
Base case assumptions: 4.3% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 HAL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Halliburton Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
16.5x
PEG Ratio
n/m
Earnings Yield
6.09%
ROE (TTM)
15.1%
Revenue/Share (TTM)
$26.76
Dividend Yield
2.16%
Debt/Equity
0.74x
Frequently Asked Questions
What is the PE ratio of HAL?
The trailing twelve-month PE ratio of HAL reflects how much investors pay per dollar of Halliburton Company's earnings. This metric is most useful when compared to Oil & Gas Equipment & Services peers and the company's own historical range.
Is HAL overvalued based on PE ratio?
HAL's PE of 16.5x combined with a PEG ratio of -1.53 provides a growth-adjusted perspective. HAL 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 HAL stock using PE ratio?
To value Halliburton Company using PE: (1) Compare the current PE (16.5x) against the Oil & Gas Equipment & Services median to assess relative pricing, (2) check the PEG ratio (-1.53) 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 HAL?
HAL's PEG ratio is -1.53, calculated by dividing the PE ratio (16.5x) by the expected earnings growth rate. Because HAL 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 HAL stock valuation?
PE ratio gives a quick relative read — how HAL is priced versus Oil & Gas Equipment & Services peers. DCF provides an absolute value based on projected free cash flows. For HAL, with a strong ROE of 15.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 HAL 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 HAL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.