Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.85%, lower than industry average of 7.50%.

Growth Trajectory

Profitability

In the growth phase company makes 16.86% profit on every dollar of sales, higher than industry average of 4.87%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.64% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
73.15B USD
Equity Value
61.98B USD
FCF Yield
116.29%
Average ROIC
17.32%
Cost of Capital
8.07%
P/E Ratio
9.44x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues35.48B USD36.29B USD
Operating Income or EBIT6.38B USD6.68B USD
Interest Expense556M USD512M USD
Book Value Of Equity20.30B USD21.13B USD
Book Value Of Debt13.70B USD12.07B USD
Cash and Marketable Securities3.75B USD4.67B USD
Number of Shares Outstanding1.35B--
Minority interests1.22B USD0 USD
Current Stock Price36.16 USD--
Effective Tax Rate19.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-9.73%
-2.24%Company
vs
7.49%Industry
Below Industry
Operating Margin
+13.13%
17.99%Company
vs
4.87%Industry
Above Industry
Schlumberger Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 51% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 37.51B USD Add
Present Value (Cash Flow Over Next 10 Years) 35.64B USD Add
Value of Operating Assets 73.15B USD Sub-total
Debt 13.69B USD Subtract
Minority Interests 1.22B USD Subtract
Cash 3.74B USD Add
Value of Equity 61.98B USD Sub-total
Number of Shares 1.35B shares Divisor
Estimated Value per Share (Fair Value) 45.87 USD Total
Current Market Price 36.15 USD Reference

Financial Projections

Total FCF Present Value
35.64B USD
Avg Revenue Growth
4.36%
Avg Operating Margin
16.61%
Avg ROIC
17.32%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue37.19B USD39.00B USD40.89B USD42.88B USD44.96B USD47.12B USD49.36B USD51.68B USD54.09B USD56.58B USD59.18B USD
Growth Rate 4.84% 4.85% 4.85% 4.85% 4.85% 4.80% 4.75% 4.70% 4.65% 4.59% 4.59%
PROFITABILITY
Operating Income6.69B USD6.72B USD6.89B USD7.06B USD7.24B USD7.59B USD7.95B USD8.32B USD8.71B USD9.11B USD9.53B USD
Operating Margin 17.99% 17.24% 16.86% 16.48% 16.10% 16.10% 16.10% 16.10% 16.10% 16.10% 16.10%
EBIT (1-tax)5.42B USD5.44B USD5.58B USD5.72B USD5.86B USD6.05B USD6.24B USD6.44B USD6.63B USD6.83B USD7.14B USD
CASH FLOW
Reinvestment552.47M USD579.29M USD607.42M USD636.91M USD660.82M USD715.19M USD741.15M USD767.58M USD794.48M USD831.02M USD3.72B USD
Free Cash Flow4.87B USD4.86B USD4.97B USD5.08B USD5.20B USD5.34B USD5.50B USD5.67B USD5.84B USD6.00B USD3.42B USD
Terminal Value--------------------80.96B USD
Present Value4.52B USD4.20B USD3.99B USD3.79B USD3.60B USD3.42B USD3.26B USD3.10B USD2.94B USD2.78B USD—
EFFICIENCY
ROIC 17.92% 17.68% 17.79% 17.89% 17.97% 18.19% 18.37% 18.54% 18.69% 18.82% 8.83%
Cost of Capital 7.64% 7.64% 7.64% 7.64% 7.64% 7.87% 8.11% 8.35% 8.59% 8.83% 8.83%
Sales/Capital 3.26x 3.26x 3.26x 3.26x 3.26x 3.13x 3.13x 3.13x 3.13x 3.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)