Is Baker Hughes Company overvalued?

In our latest published analysis dated 2026-05-20, BKR looks meaningfully overvalued. The price recorded at analysis is USD 66.7 versus a composite fair-value midpoint of USD 53.3 (range USD 40.1–USD 67.6), implying roughly 20.2% downside to the midpoint at that date.

What is BKR's fair value?

Our latest published report, analyzed 2026-05-20, gives BKR a composite fair-value range of USD 40.1–USD 67.6, with a midpoint of USD 53.3. The range is triangulated across multiple valuation models and weighted by reliability for Baker Hughes Company's archetype; it is a dated research output, not a live price.

Should I buy BKR now?

Our latest published rating for BKR, analyzed 2026-05-20, is Reduce with a confidence score of 82/100. Baker Hughes Company looks meaningfully overvalued at the analysis-date price of USD 66.7 versus a fair-value midpoint of USD 53.3. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for BKR?

The top risks our latest published report dated 2026-05-20 flags for Baker Hughes Company are: Cyclical Downcycle; LNG FID Freeze; Margin Contraction.

What is BKR's rating?

Our latest published rating for BKR, analyzed 2026-05-20, is Reduce, with a confidence score of 82/100 and a moat score of 6.5/10. It reflects the composite fair-value range (USD 40.1–USD 67.6) versus the price recorded at analysis (USD 66.7).

What archetype is BKR?

In the latest published report analyzed 2026-05-20, Baker Hughes Company is classified as a cyclical stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for BKR.

What are BKR's bull, base, and bear cases?

Each scenario for Baker Hughes Company (BKR) carries a five-year price target, an explicit set of assumptions (growth, terminal multiple, margin path), and a probability weight calibrated against current visibility.

How are BKR's probability weights set?

Probability weights start from a 25/50/25 default and are asymmetry-adjusted: when downside risk is elevated, base + bear gain weight; when visibility is high (long RPO, multi-year contracts), bull and base both gain.

What is BKR's expected return?

Expected return is the probability-weighted average of the three scenario returns. The expected-value table reports the weighted price, weighted return, and asymmetry to help the reader compare risk-reward against the rating band.

How do BKR's scenarios compare to private calibration references?

When our composite fair value differs from private calibration references by more than 30%, the calibration-divergence diagnostic is run to identify which assumptions drive the gap; the result is summarised in the parent valuation surface.

BKR scenarios: bull, base, bear with probability weights

Latest published researchAnalyzed 2026-05-20; report age: stale; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

Baker Hughes possesses a bifurcated profile. Its traditional OFS segment is subject to intense E&P capital cyclicality, while its IET segment offers a structural growth tailwind via LNG and compression tech. At current valuations, the market is pricing in sustained execution. Fair value range: low $40.1, high $67.6, with mid-point at $53.3.

SCENARIOS FAQ

BKR scenarios questions

Each scenario for Baker Hughes Company (BKR) carries a five-year price target, an explicit set of assumptions (growth, terminal multiple, margin path), and a probability weight calibrated against current visibility.

FAQ

BKR — frequently asked questions

In our latest published analysis dated 2026-05-20, BKR looks meaningfully overvalued. The price recorded at analysis is USD 66.7 versus a composite fair-value midpoint of USD 53.3 (range USD 40.1–USD 67.6), implying roughly 20.2% downside to the midpoint at that date.

Metric	Current	Trigger threshold
Book-to-bill ratio in the IET segment falls below 1.0x.	Monitor	Deterioration versus the report thesis
Consistent downward revisions to forward P/E below the 14x terminal assumption.	Monitor	Deterioration versus the report thesis
Free cash flow conversion drops sharply due to working capital build.	Monitor

Line item	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	—	$21.16B	$25.51B+20.6%	$27.83B+9.1%	$27.73B-0.4%	+7.0%
Gross profit	—	$4.40B	$5.90B	$6.48B	$6.54B	+10.4%
Operating income	—	$1.89B	$2.64B	$3.38B	$3.56B	+17.1%
Net income	—	$-601.0M	$1.94B	$2.98B+53.6%	$2.59B-13.1%	—
EPS (diluted)	$-0.27	$-0.61	$1.91	$2.98	$2.60	—
EBITDA	—	$1.34B	$3.96B	$4.60B	$4.29B	+33.9%
R&D	—	—	$651.0M	$643.0M	$600.0M	-2.0%
SG&A	—	$2.51B	$2.61B	$2.46B	$2.39B	-1.2%

BKR scenarios questions

BKR — frequently asked questions

BKR Baker Hughes Company fair value $40–$68

§1 Executive summary

Names readers of BKR also follow

§2 Bear case

Cyclical Downcycle

LNG FID Freeze

Margin Contraction

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.