SLB
SLB
Hold 2026-04-01
Model
DCF
Price at Report
$51.39
Base IV
$40.86
Bear IV
$23.25
Bull IV
$61.37
Entry Zone: 24-38 · Sell Above: 52
Bore Family Office
Valuation Report — SLB N.V. (SLB) • April 1, 2026
Unlevered DCF (FCFF @ WACC) • Discount Rate: 10.00% • Current Price: $51.39
Prepared by Lurch • Bore Family Office • Data: Finnhub, StockAnalysis.com, S&P Global Market Intelligence
🏢 Business Overview
SLB (formerly Schlumberger) is the world's largest oilfield services company, providing technology, services, and solutions across the full oil & gas lifecycle. The company operates in 120+ countries and serves IOCs, NOCs, and independent E&P companies with four divisions: Well Construction, Completions, Production Systems, and Reservoir Performance. SLB also operates Delfi, a cloud-based digital platform for energy data and AI-driven reservoir optimization.
Following the acquisition of Cameron International and the spin-off of Liberty Energy, SLB has repositioned as a technology-led oilfield services business with exposure to the energy transition through its New Energy segment (geothermal, CCUS, hydrogen). The company's global scale and technology differentiation provide a durable competitive advantage over smaller oilfield services peers.
| Business Segment | Revenue | % of Total | YoY Growth | Margin | Notes |
|---|---|---|---|---|---|
| Well Construction | $11,200M | 31% | -2.0% | — | Drilling equipment/services — most cyclical |
| Reservoir Performance | $7,200M | 20% | -1.0% | — | Well evaluation, stimulation — higher margin |
| Production Systems | $10,500M | 29% | -1.0% | — | Surface/subsea equipment — long-cycle backlog |
| Digital & Integration | $6,808M | 19% | +8.0% | — | Delfi AI platform, project management — fastest growing |
| Blended Growth Rate | — | 100% | +0.4% | — | Weighted avg across segments |
🔍 Quality Scorecard
| Metric | Value | Assessment |
|---|---|---|
| ROIC | 11.8% | 8–12% adequate |
| FCF Margin | 12.2% | ≥10% strong |
| Debt / EBITDA | 1.1x | ≤2x conservative |
| Revenue Trend | Mixed | 3-year directional trend |
| FCF Margin Trend | Stable (±1pp) | Directional margin trajectory |
| Analyst Revisions | Neutral | Last 90 days consensus direction |
✅ Quality profile supports the valuation
📊 Financial Snapshot
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue ($M) | $22,929 | $28,091 | $33,135 | $36,289 | $35,708 |
| Rev YoY Growth | — | +22.5% | +18.0% | +9.5% | -1.6% |
| Gross Margin | 16.0% | 18.4% | 19.8% | 20.6% | 18.2% |
| EBITDA ($M) | $4,885 | $6,298 | $7,755 | $8,323 | $7,011 |
| EBITDA Margin | 21.3% | 22.4% | 23.4% | 22.9% | 19.6% |
| Operating Income ($M) | $2,765 | $4,151 | $5,443 | $5,804 | $4,368 |
| Operating Margin | 12.1% | 14.8% | 16.4% | 16.0% | 12.2% |
| Net Income ($M) | $1,881 | $3,441 | $4,203 | $4,461 | $3,374 |
| Net Margin | 8.2% | 12.2% | 12.7% | 12.3% | 9.4% |
| EPS (diluted) | $1.32 | $2.39 | $2.91 | $3.11 | $2.35 |
| Free Cash Flow ($M) | $3,036 | $1,515 | $4,191 | $4,188 | $4,367 |
| Annual DPS | $0.500 | $0.650 | $1.000 | $1.100 | $1.140 |
| Total Debt ($M) | $14,195 | $12,226 | $11,965 | $12,074 | $11,636 |
💹 Capital Return & Share Count Analysis
Net Share Change
+0.7% (2021→2025)
📈 Net dilution — issuances exceed buybacks
EPS Amplification
EPS grew +78.0% vs net income +79.4% over the period — -1.3pp of EPS growth diluted by share issuance.
| Year | Diluted Shares (M) | YoY Change | Buyback Spend ($M) | Buyback Yield |
|---|---|---|---|---|
| 2021 | 1427.0M | — | $24 | 0.0% |
| 2022 | 1437.0M | +0.7% | $93 | 0.1% |
| 2023 | 1443.0M | +0.4% | $863 | 1.2% |
| 2024 | 1436.0M | -0.5% | $1,827 | 2.5% |
| 2025 | 1437.0M | +0.1% | $2,475 | 3.4% |
SLB dramatically accelerated buybacks: from near-zero in 2021-2022 to $2.5B in FY2025. Share count has remained flat despite massive issuances for acquisitions (largely offset). The buyback program ($1.6B dividends + $2.5B buybacks = $4.1B total) represents a 5.6% total shareholder yield at current prices. Buybacks are funded entirely from FCF ($4.4B). Management explicitly committed to $4B+ capital return in 2025 at the Jan 2025 investor day.
📈 DCF Scenarios
$23
🔴 Bear
$41
📊 Base
$61
🚀 Bull
$51.39
Current Price
$52
Analyst Avg PT
| Scenario | Stage 1 (Yrs 1–5) | Stage 2 (Yrs 6–10) | Terminal g | WACC | Intrinsic Value | vs Price |
|---|---|---|---|---|---|---|
| 🔴 Bear | -4.0% | 1.0% | 1.5% | 10.00% | $23 | ▼54.8% |
| 📊 Base | 5.0% | 4.0% | 2.0% | 10.00% | $41 | ▼20.5% |
| 🚀 Bull | 9.0% | 6.0% | 2.5% | 10.00% | $61 | ▲19.4% |
📋 Full 10-Year Projection Tables
Bear Scenario
Stage 1: -4.0% | Stage 2: 1.0% | Terminal: 1.5%
| Period | Stage | FCFF | PV of FCFF | Cumulative EV |
|---|---|---|---|---|
| Year 1 ✦ | Stage 1 | $3.80B | $3.45B | $3.45B |
| Year 2 ✦ | Stage 1 | $3.70B | $3.06B | $6.51B |
| Year 3 ✦ | Stage 1 | $3.60B | $2.70B | $9.22B |
| Year 4 ✦ | Stage 1 | $3.60B | $2.46B | $11.68B |
| Year 5 ✦ | Stage 1 | $3.70B | $2.30B | $13.97B |
| Year 6 | Stage 2 | $3.74B | $2.11B | $16.08B |
| Year 7 | Stage 2 | $3.77B | $1.94B | $18.02B |
| Year 8 | Stage 2 | $3.81B | $1.78B | $19.80B |
| Year 9 | Stage 2 | $3.85B | $1.63B | $21.43B |
| Year 10 | Stage 2 | $3.89B | $1.50B | $22.93B |
| Terminal | — | TV=$46.4B | PV(TV)=$17.9B (44% of EV) | EV=$40.8B |
| Intrinsic Value | — | — | EV $40.8B − Net Debt → Equity / Shares | $23 |
How the price per share is derived: Each year's projected free cash flow is discounted back at WACC (10.00%) to get its present value. After Year 10, FCF grows at the terminal rate (1.5%) in perpetuity — the Gordon Growth formula gives a terminal value of FCF11 / (WACC − gT) = $46.4B. That terminal value is discounted back 10 years to today's dollars (PV of TV = $17.9B). Enterprise Value = PV of FCFs ($22.9B) + PV of TV ($17.9B) = $40.8B. Subtracting net debt gives equity value of $33.4B, divided by shares outstanding = $23 per share.
Base Scenario
Stage 1: 5.0% | Stage 2: 4.0% | Terminal: 2.0%
| Period | Stage | FCFF | PV of FCFF | Cumulative EV |
|---|---|---|---|---|
| Year 1 ✦ | Stage 1 | $4.50B | $4.09B | $4.09B |
| Year 2 ✦ | Stage 1 | $4.75B | $3.93B | $8.02B |
| Year 3 ✦ | Stage 1 | $5.00B | $3.76B | $11.77B |
| Year 4 ✦ | Stage 1 | $5.25B | $3.59B | $15.36B |
| Year 5 ✦ | Stage 1 | $5.50B | $3.42B | $18.77B |
| Year 6 | Stage 2 | $5.72B | $3.23B | $22.00B |
| Year 7 | Stage 2 | $5.95B | $3.05B | $25.06B |
| Year 8 | Stage 2 | $6.19B | $2.89B | $27.94B |
| Year 9 | Stage 2 | $6.43B | $2.73B | $30.67B |
| Year 10 | Stage 2 | $6.69B | $2.58B | $33.25B |
| Terminal | — | TV=$85.3B | PV(TV)=$32.9B (50% of EV) | EV=$66.1B |
| Intrinsic Value | — | — | EV $66.1B − Net Debt → Equity / Shares | $41 |
How the price per share is derived: Each year's projected free cash flow is discounted back at WACC (10.00%) to get its present value. After Year 10, FCF grows at the terminal rate (2.0%) in perpetuity — the Gordon Growth formula gives a terminal value of FCF11 / (WACC − gT) = $85.3B. That terminal value is discounted back 10 years to today's dollars (PV of TV = $32.9B). Enterprise Value = PV of FCFs ($33.3B) + PV of TV ($32.9B) = $66.1B. Subtracting net debt gives equity value of $58.7B, divided by shares outstanding = $41 per share.
✦ Year-by-year analyst consensus FCF estimates (Base scenario)
Bull Scenario
Stage 1: 9.0% | Stage 2: 6.0% | Terminal: 2.5%
| Period | Stage | FCFF | PV of FCFF | Cumulative EV |
|---|---|---|---|---|
| Year 1 ✦ | Stage 1 | $5.00B | $4.55B | $4.55B |
| Year 2 ✦ | Stage 1 | $5.50B | $4.55B | $9.09B |
| Year 3 ✦ | Stage 1 | $6.10B | $4.58B | $13.67B |
| Year 4 ✦ | Stage 1 | $6.70B | $4.58B | $18.25B |
| Year 5 ✦ | Stage 1 | $7.40B | $4.59B | $22.84B |
| Year 6 | Stage 2 | $7.84B | $4.43B | $27.27B |
| Year 7 | Stage 2 | $8.31B | $4.27B | $31.54B |
| Year 8 | Stage 2 | $8.81B | $4.11B | $35.65B |
| Year 9 | Stage 2 | $9.34B | $3.96B | $39.61B |
| Year 10 | Stage 2 | $9.90B | $3.82B | $43.43B |
| Terminal | — | TV=$135.3B | PV(TV)=$52.2B (55% of EV) | EV=$95.6B |
| Intrinsic Value | — | — | EV $95.6B − Net Debt → Equity / Shares | $61 |
How the price per share is derived: Each year's projected free cash flow is discounted back at WACC (10.00%) to get its present value. After Year 10, FCF grows at the terminal rate (2.5%) in perpetuity — the Gordon Growth formula gives a terminal value of FCF11 / (WACC − gT) = $135.3B. That terminal value is discounted back 10 years to today's dollars (PV of TV = $52.2B). Enterprise Value = PV of FCFs ($43.4B) + PV of TV ($52.2B) = $95.6B. Subtracting net debt gives equity value of $88.2B, divided by shares outstanding = $61 per share.
🔲 Sensitivity Table
| WACC \ gT | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.0% | $53 | $56 | $60 | $64 | $69 |
| 8.5% | $49 | $51 | $54 | $57 | $61 |
| 9.0% | $45 | $47 | $49 | $52 | $55 |
| 9.5% | $42 | $43 | $45 | $48 | $50 |
| 10.0% | $39 | $40 | $42 | $44 | $46 |
| 10.5% | $36 | $37 | $39 | $40 | $42 |
| 11.0% | $34 | $35 | $36 | $37 | $39 |
| 11.5% | $32 | $33 | $34 | $35 | $36 |
| 12.0% | $30 | $31 | $32 | $33 | $34 |
Green = >10% above current price. Red = >10% below. Gold = within ±10%.
📉 Long-Term Price Trend Channel
Log-linear trend fitted to full price history. ±1.5σ bands. Green shaded zone = bottom 25% of historical range — historically attractive entry.
🏦 Comparable Valuation
| Company | Ticker | P/E (Fwd) | EV/EBITDA | FCF Yield | Note |
|---|---|---|---|---|---|
| SLB N.V. | SLB | 17.5× | 11.8× | 5.3% | Current — world #1 OFS |
| Halliburton | HAL | 12.8× | 8.5× | 7.2% | Completions focused |
| Baker Hughes | BKR | 16.2× | 10.2× | 6.1% | Diversified energy tech |
| TechnipFMC | FTI | 18.4× | 12.1× | 5.8% | Subsea specialist |
| NOV Inc | NOV | 14.1× | 7.8× | 8.4% | Rig equipment; lower margin |
| SLB 5-yr avg | — | 18.5× | 11.5× | 4.5% | Own history |
💰 Dividend / Distribution Analysis
| Metric | Value |
|---|---|
| Annual DPS | $1.140 |
| Current Yield | 2.22% |
| Consecutive Growth Years | 5 |
| 1-yr DPS CAGR | +3.6% |
| 3-yr DPS CAGR | +31.6% |
| 5-yr DPS CAGR | +18.0% |
| 10-yr DPS CAGR | — |
| Payout Ratio (DPS/EPS) | 48.5% |
| FCF Payout Ratio | 37.5% |
| Sustainability Verdict | Safe |
SLB dividend is well-covered at 37.5% FCF payout and 48.5% EPS payout. The dividend was severely cut in 2020 (to $0.125/quarter) and has been aggressively rebuilt — from $0.50 annualized in 2021 to $1.14 in 2025. At current FCF coverage, dividend is safe and growing. Buybacks ($2.5B in 2025) are the primary capital return mechanism.
🔮 Analyst Forecast Section
(a) EPS Consensus
| Year | Low / Actual | Avg | High | # Analysts | Type |
|---|---|---|---|---|---|
| 2021 | $1.32 | — | — | — | Actual |
| 2022 | $2.39 | — | — | — | Actual |
| 2023 | $2.91 | — | — | — | Actual |
| 2024 | $3.11 | — | — | — | Actual |
| 2025 | $2.35 | — | — | — | Actual |
| 2026 | $2.67 | $2.94 | $3.38 | 31 | Estimate |
| 2027 | $2.84 | $3.40 | $4.34 | 31 | Estimate |
(b) Revenue Consensus
| Year | Low / Actual | Avg | High | # Analysts | Type |
|---|---|---|---|---|---|
| 2021 | $22.9B | — | — | — | Actual |
| 2022 | $28.1B | — | — | — | Actual |
| 2023 | $33.1B | — | — | — | Actual |
| 2024 | $36.3B | — | — | — | Actual |
| 2025 | $35.7B | — | — | — | Actual |
| 2026 | $35.2B | $37.4B | $39.4B | 31 | Estimate |
| 2027 | $36.1B | $39.5B | $45.8B | 31 | Estimate |
(c) Individual Analyst Price Targets
| Analyst | Firm | Rating | PT | Upside |
|---|---|---|---|---|
| Neil Mehta | Goldman Sachs | Strong Buy | $60 | +16.8% |
| Lloyd Byrne | Jefferies | Strong Buy | $58 | +12.9% |
| Scott Gruber | Citigroup | Strong Buy | $56 | +9.0% |
| Guillaume Delaby | Bernstein | Buy | $56 | +9.0% |
| David Anderson | Barclays | Buy | $49 | -4.7% |
(d) Earnings Surprise History
| Quarter | EPS Act vs Est | EPS Beat/Miss | Rev Act vs Est | Rev Beat/Miss | Guidance |
|---|---|---|---|---|---|
| Q4 2025 | $0.72 vs $0.71 | +$0.01 ✅ | $9.3B vs $9.2B | +$0.1B ✅ | Cautious on E&P spending outlook |
| Q3 2025 | $0.62 vs $0.61 | +$0.01 ✅ | $9.2B vs $9.1B | +$0.1B ✅ | In-line |
| Q2 2025 | $0.56 vs $0.55 | +$0.01 ✅ | $9.1B vs $9.1B | +$0.1B ✅ | Maintained |
| Q1 2025 | $0.45 vs $0.44 | +$0.01 ✅ | $9.1B vs $9.1B | +$0.1B ✅ | Cautious |
(e) Confidence Band Commentary
20 analysts cover SLB with overwhelming Strong Buy/Buy consensus (19/20). Wide PT range ($43-60) reflects oil cycle uncertainty more than company-specific concerns. SLB has beaten EPS estimates 4 consecutive quarters — modest beats of $0.01-0.02 per share. Revenue has been slightly disappointing relative to FY2024 peak ($36.3B) given oil sector capex caution in early 2025. 2026 recovery consensus (EPS $2.94) is achievable if E&P spending stabilizes and Delfi digital contribution continues to grow. Biggest uncertainty: OPEC+ policy and oil price trajectory.
💡 Investment Thesis
- Global offshore cycle intact: Offshore sanctioning is at multi-decade highs as IOCs and NOCs pursue supply security projects with long lead times. SLB's offshore exposure generates higher-margin contracts with 3-5 year terms — providing durable revenue visibility even if oil prices soften.
- Delfi digital platform = valuation re-rating catalyst: SLB's AI-driven energy data platform is transitioning from a services business to a recurring software revenue model. Digital/Integration revenues grew 8% in FY2025 despite overall revenue declining. If Delfi achieves scale, the market will re-rate SLB toward technology multiples.
- Strong FCF inflection: FCF has stabilized at $4.2-4.4B over FY2023-2025 (12%+ FCF margin) — a structural improvement from pre-COVID levels. Management committed to $4.1B+ capital return to shareholders in 2025 ($1.6B dividends + $2.5B buybacks).
- Aggressive buyback at depressed price: SLB repurchased $2.5B in FY2025 at prices near current levels — management's clearest signal that shares are undervalued. FCF yield at current price: 8.3%.
- Energy transition optionality: SLB's geothermal, CCUS, and hydrogen businesses represent free optionality on the energy transition. Even modest success in these areas provides a growth pillar beyond traditional E&P services.
👔 Management Quality & Culture
CEO: Not identified · Tenure: Since 2019 (~7 yrs) · ★ Founder
⚠️ Key-Person Risk: HIGH
Founder-led company — strategy and culture deeply tied to a single individual. Succession planning is a material risk.
Net Insider Buys (12m)
+104,901 shares
Incentive Alignment
⚠️ Moderate
Compensation: Equity-based compensation present
CEO Background & Track Record
SLB N.V. (SLB) Leadership & Management Team Analysis - Simpl
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.58 years. total yearly compensation is $17.35M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.0
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.58 years. total yearly compensation is $17.35M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.0
SLB N.V. (SLBG34) Leadership & Management Team Analysis - Si
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.33 years. total yearly compensation is $17.31M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.0
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.33 years. total yearly compensation is $17.31M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.0
SLB N.V. (1SLB) Leadership & Management Team Analysis - Simp
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.5 years. total yearly compensation is $17.31M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.09
SLB's CEO is Olivier Le Peuch, appointed in Aug 2019, has a tenure of 6.5 years. total yearly compensation is $17.31M, comprised of 9.5% salary and 90.5% bonuses, including company stock and options. directly owns 0.09
Capital Allocation & Strategy
SLB (SLB) | Trefis | Trefis
SLB acquired ChampionX Corporation ... lithium production, hydrogen, geothermal, energy storage, and critical minerals, allocating capital to 55 high-impact sustainability projects in 2023....
SLB acquired ChampionX Corporation ... lithium production, hydrogen, geothermal, energy storage, and critical minerals, allocating capital to 55 high-impact sustainability projects in 2023....
Annual Report on Form 10-K For the Fiscal Year Ended Decembe
President, Sales & Commercial, May 2019 to March 2023. ... Resources, February 2019 to March 2022. ... Controller, October 2017 to June 2022. ... Chief Accounting Officer, since July 2005. ... Director, Mergers and Acqu
President, Sales & Commercial, May 2019 to March 2023. ... Resources, February 2019 to March 2022. ... Controller, October 2017 to June 2022. ... Chief Accounting Officer, since July 2005. ... Director, Mergers and Acqu
Employee Ratings
Overall Rating
3.4/5 ★★★☆☆
Reviews
1,716
Culture Signal
Positive
✅ Strengths
- work-life balance
- recommend
Employee Review Excerpts
SLB Reviews (11,459): Pros & Cons of Working At SLB | Glassd
How satisfied are employees working at SLB?76% of SLB employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated SLB 3.4 out of 5 for work life balance, 3.9 for culture and values a
How satisfied are employees working at SLB?76% of SLB employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated SLB 3.4 out of 5 for work life balance, 3.9 for culture and values a
Working at SLB: 1,716 Reviews | Indeed.com
1,716 reviews from SLB employees about SLB culture, salaries, benefits, work-life balance, management, job security, and more.
1,716 reviews from SLB employees about SLB culture, salaries, benefits, work-life balance, management, job security, and more.
SLB Scrum Master Reviews | Glassdoor
Jan 30, 2025 · Scrum master · Former employee, more than 5 years · Pune · Recommend · CEO approval · Business Outlook · Pros · Diverse and Inclusive Culture. Work-Life Balance: Cons · Job Security is big issue when industry
Jan 30, 2025 · Scrum master · Former employee, more than 5 years · Pune · Recommend · CEO approval · Business Outlook · Pros · Diverse and Inclusive Culture. Work-Life Balance: Cons · Job Security is big issue when industry
Sources: Finnhub insider data · Brave Search (Glassdoor, Indeed, Comparably, news) · Earnings surprise data from analyst forecasts · Qualitative signals are directional only.
⚖️ DCF Verdict: Hold — SLB N.V. (SLB)
Current price: $51.39 | Analyst Avg PT: $52.11
$23
🔴 Bear
$41
📊 Base
$61
🚀 Bull
| Tier | Price | Action |
|---|---|---|
| Tier 1 — Starter | ≤$38 | Begin position |
| Tier 2 — Add | ≤$32 | Add on weakness |
| Tier 3 — Full | ≤$24 | Full allocation |
| Sell Alert | ≥$52 | Above fair value — consider trimming |
How tiers are set: Tier 1 = Base IV × 0.92 (8% discount to base case). Tier 2 = midpoint of Bear & Base IV (building on meaningful weakness). Tier 3 = Bear IV × 1.05 (just above worst-case — maximum margin of safety). Sell alert = Bull IV × 0.85 (15% discount to bull case — above fair value range).
At $51.39, SLB trades at 17.4× forward EPS and 8.3% FCF yield — a compelling entry for the world's premier oilfield services technology company. With 20 analysts at Strong Buy/Buy and $4.1B in annual capital returns, the downside is protected while upside to Base DCF of ~$52-55 is modest but growing.
Hold / Accumulate on weakness. At current price SLB is essentially at fair value per our Base DCF. Add aggressively below $45 (Bear IV). Bull case $75+ requires offshore cycle continuation + Delfi monetization. Key risk: oil demand destruction from recession or accelerated EV adoption.
🔧 Model Notes & Calibration
| Assumption | Rationale / Notes |
|---|---|
| Model Selection | DCF chosen: FCF payout 37.5% — dividend understates value. SLB returns the other 62.5% of FCF via buybacks. Total capital return yield (dividends + buybacks) is 5.6% at current price — far more than the 2.2% dividend yield alone. |
| FCF Base | Used $4,250M normalized FCF (average of FY2023-2025: $4.19B, $4.19B, $4.37B). Very stable FCF despite revenue declining slightly in FY2025. This confirms structural FCF improvement from pre-2023 levels ($1.5B in FY2022). |
| WACC Build | Rf=4.3%, Beta=1.20, ERP=5.5% → Ke=10.9%. Market cap $73.8B, total debt $11.6B. Kd post-tax=4.4%. We=86.4%, Wd=13.6%. WACC=10.0%. |
| EPS vs FCF | FY2025 EPS of $2.35 is depressed vs FY2024's $3.11 due to higher D&A and one-time items. FCF is more stable. Consensus recovery to $2.94 in 2026 reflects normalization. FCF/share ($3.04) > EPS — typical for asset-heavy businesses. |
| Sanity Check | Target: Base IV near analyst consensus $52.11. WACC=10%, FCF base=$4.25B, g1=5% should yield approximately $48-55. Reasonable for current oil cycle conditions. |
Bore Family Office • Analysis generated by Lurch • Not investment advice.