DCF Studio

    SLB · NYQ · Energy

    SLB N.V.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 60.83

    Market price

    USD 52.31

    Implied upside

    +16.3%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    Value Per Share

    Perpetuity growth
    USD 60.83+16.3%
    Exit multiple
    USD 67.72+29.5%
    Market price
    USD 52.31

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn3bn6bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 37.1bnUSD 40.1bnUSD 43.1bnUSD 46.0bnUSD 48.8bnUSD 51.4bnUSD 53.8bnUSD 55.9bnUSD 57.6bnUSD 59.1bn+5.3%
    EBITUSD 5.9bnUSD 6.4bnUSD 6.9bnUSD 7.4bnUSD 7.8bnUSD 8.2bnUSD 8.6bnUSD 8.9bnUSD 9.2bnUSD 9.5bn+5.3%
    NOPATUSD 4.8bnUSD 5.2bnUSD 5.6bnUSD 6.0bnUSD 6.3bnUSD 6.7bnUSD 7.0bnUSD 7.2bnUSD 7.5bnUSD 7.6bn+5.3%
    Add depreciation & amortisationUSD 2.1bnUSD 2.2bnUSD 2.4bnUSD 2.6bnUSD 2.7bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.2bnUSD 3.3bn+5.3%
    Less capital expenditureUSD -2.2bnUSD -2.4bnUSD -2.7bnUSD -2.9bnUSD -3.2bnUSD -3.4bnUSD -3.7bnUSD -3.9bnUSD -4.1bnUSD -4.3bn+7.7%
    Capex, % of revenue5.9%6.1%6.2%6.4%6.5%6.7%6.8%7.0%7.1%7.3%-
    Less increase in working capitalUSD -336.1mUSD -712.9mUSD -704.1mUSD -684.7mUSD -654.3mUSD -612.6mUSD -559.7mUSD -496.2mUSD -422.8mUSD -340.5m+0.1%
    Free cashflow to firmUSD 4.3bnUSD 4.3bnUSD 4.6bnUSD 4.9bnUSD 5.2bnUSD 5.5bnUSD 5.7bnUSD 6.0bnUSD 6.1bnUSD 6.3bn+4.2%
    Discount factor0.96240.89130.82540.76440.70800.65570.60720.56240.52080.4823-
    Present valueUSD 4.2bnUSD 3.8bnUSD 3.8bnUSD 3.8bnUSD 3.7bnUSD 3.6bnUSD 3.5bnUSD 3.3bnUSD 3.2bnUSD 3.0bn-
    Present Value Of The ForecastUSD 35.9bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.861Reported 0.792, pulled toward 1.0 (Blume)
    Cost of equity8.53%Risk-free + beta x equity risk premium
    Cost of debt5.29%Risk-free + 40bp, the spread for a AAA rating at 9.8x interest cover. Book interest / average debt was lower, at 4.7%.
    Market capitalisationUSD 77.2bn86.9% of capital
    Total debtUSD 11.6bn13.1% of capital, book value as a proxy
    Tax rate19.2%Effective, capped at statutory
    WACC7.98%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 60.83

    62% of EV

    Forecast FCFF, final year
    USD 6.3bn
    Capex at depreciation, working capital in reinvestment
    USD 8.1bn
    Less reinvestment at g/ROIC (19.6% of NOPAT)
    USD -1.6bn
    Capitalised
    USD 6.5bn
    ROIC (reported)
    12.7%
    Terminal value, undiscounted
    USD 122.2bn
    Terminal value, discounted
    USD 59.0bn
    Enterprise value
    USD 94.8bn
    Less net debt
    USD 7.4bn
    Equity value
    USD 87.4bn

    Exit at 11.2x EBITDA

    Value per shareUSD 67.72

    66% of EV

    Terminal value, undiscounted
    USD 142.8bn
    Terminal value, discounted
    USD 68.9bn
    Enterprise value
    USD 104.7bn
    Less net debt
    USD 7.4bn
    Equity value
    USD 97.3bn

    Spread between methods: 11%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    5.98%88.6793.2799.34107.65119.52
    6.98%70.9273.0575.7779.3083.99
    7.98%58.7059.6460.8362.3664.34
    8.98%49.7950.1050.5251.1051.86
    9.98%43.0142.9742.9943.0843.24

    Outlined: this model. Green text: above today's price of 52.31. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year8.3%5.2%3.4%
    EBIT margin17.4%16.0%13.9%
    Discount rate-8.0%8.8%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.