BKR Baker Hughes
fair · 66
Owner-earnings value$61.97
Price$54.40
Margin of safety
+13.9%
Quality gate · 66/100
Median ROIC11.8%
Gross margin23.6%
Net debt / EBITDA0.5x
FCF conversion106%
Share count / yr-0.6%
Profitable years3/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 3.10B |
| Owner-earnings yield | 5.7% |
| Free-cash-flow yield | 5.8% |
| Growth used (normalized) | 9.4% |
| Market-implied growth (reverse DCF) | 6.2% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.7% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 3.39B | 9.4% | 3.09B |
| 2 | 3.68B | 8.7% | 3.06B |
| 3 | 3.98B | 8.0% | 3.01B |
| 4 | 4.27B | 7.3% | 2.94B |
| 5 | 4.55B | 6.6% | 2.86B |
| 6 | 4.82B | 5.9% | 2.76B |
| 7 | 5.07B | 5.1% | 2.64B |
| 8 | 5.29B | 4.4% | 2.51B |
| 9 | 5.49B | 3.7% | 2.38B |
| 10 | 5.65B | 3.0% | 2.23B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~6%/yr owner-earnings growth over 10y (reverse DCF); model credits 9%.