Baker Hughes Co (BKR) is slightly overvalued and Halliburton Co (HAL) is fairly valued.
Against our estimates of intrinsic value, HAL trades at the wider discount: a margin of safety of +1%, against -19% for BKR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $48.25; the price of $57.26 is 19% above that value, and 73% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $33.10; the price of $32.85 is 1% below that value, and 77% of that value comes from beyond year five.
Leak Score 64/100 on 10 of 12 signals
| Metric | BKR | HAL |
|---|---|---|
| Verdict | Slightly overvalued | Fairly valued |
| Price | $57.26 | $32.85 |
| Intrinsic value | $48.25 | $33.10 |
| Margin of safety | -19% | +1% |
| Leak Score | 51/100 (9/12) | 64/100 (10/12) |
| Market cap | $56.8B | $27.4B |
| Revenue growth, 5 years | 6.0% | 9.0% |
| Operating margin | 13.0% | 13.1% |
| Net margin | 11.2% | 7.2% |
| Return on equity | 16.5% | 14.9% |
| Debt to equity | 0.82 | 0.74 |
| P/E | 18.4x | 17.2x |
| Forward P/E | 18.9x | 11.4x |
| P/B | 2.9x | 2.5x |
| Dividend yield | 1.6% | 2.1% |