What is Baker Hughes Company (BKR) DCF Fair Value and Intrinsic Value in 2026?

Baker Hughes Company (BKR) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Baker Hughes Company's historical Return on Invested Capital (ROIC) and Moat Rating?

Baker Hughes Company operates in the Energy sector (Oil & Gas Equipment & Services) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Baker Hughes Company's financial health rating and Piotroski F-Score?

Baker Hughes Company's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Baker Hughes Company (BKR) for quarterly SEC filing thesis breaks?

LocalAlpha audits Baker Hughes Company's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBKR

BKR

Baker Hughes CompanyEnergy / Oil & Gas Equipment & ServicesINTACT

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company's Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.

Share Price

$57.36

52W: $43.92 - $70.41

DCF Fair Value

$89.22

+35.7% MoS

Thesis Hub

P/E (TTM)

18.4x

ROIC

9.6%

Operating Margin

12.8%

FCF Yield

7.8%

Debt / Equity

0.81x

Piotroski Score

7/9

Altman Z-Score

4.07

Market Cap

$56.9B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$89.22

MOS Buy Target (-25%)

$66.92

Valuation Overlays: DCF Fair Value ($89.22) 25% MOS Buy Target ($66.92) Revised Graham ($51.60) Graham Number ($37.47)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$57.36

DCF Fair Value

$89.12

+35.6% MoS

Starting Free Cash Flow ($M)$4,415M

$100M$4,415M (Reported)$50,000M

Stage 1 Growth (Years 1-5)6.4%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$700M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$37.8B

PV of Terminal Value

$50.0B

Implied Enterprise Value

$87.8B

Implied Equity Value

$88.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$4,698	$4,998	$5,318	$5,658	$6,021	$6,292	$6,575	$6,870	$7,180	$7,503
Present Value (PV)	$4,310	$4,207	$4,107	$4,009	$3,913	$3,751	$3,597	$3,448	$3,306	$3,169

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-53.1% Premium

$37.47

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.11BVPS: $20.06

Revised Graham Formula-11.2% Premium

$51.60

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings7.4% Yield

$4.22 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.2BYield: 7.4%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-0.2% CAGR (Next 10 Yrs)

At the current price of $57.36, the market is assuming the business will compound Free Cash Flow at -0.2% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BKR with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Baker Hughes Company. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 12.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Baker Hughes Company (BKR) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Baker Hughes Company.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Baker Hughes Company has an estimated DCF intrinsic fair value of $89.22 per share compared to its current market price of $57.36. This represents an estimated 35.7% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $37.47.