Baker Hughes (BKR) Valuation Check as Rising Rig Counts and 2025 Output Forecasts Lift Sector Expectations

Fresh rig count data from Baker Hughes (BKR) show North American activity ticking higher, with more U.S. oil rigs coming online just as 2025 output forecasts improve, putting the stock squarely back on investors’ radar.

See our latest analysis for Baker Hughes.

The uptick in rig activity comes after a choppier stretch for the stock, with a recent pullback leaving Baker Hughes at around $47.46. Its year to date share price return remains solid, and its multi year total shareholder return shows strong compounding momentum.

If this rig led story has you thinking about where else growth and conviction might be lining up, it could be a good time to explore aerospace and defense stocks as another pocket of potential opportunity.

With the shares up strongly over three and five years yet still trading at a double digit discount to analyst targets and a deeper implied intrinsic discount, investors now face a key question: is this a buy or has future growth already been priced in?

Most Popular Narrative Narrative: 9.7% Undervalued

With Baker Hughes last closing at $47.46 against a widely followed fair value of about $52.57, the narrative frames a modest upside built on durable earnings and sector recovery tailwinds.

The company's strong momentum in securing large scale service contracts, framework agreements, and technology driven orders (such as for data centers, LNG, CCS, and recurring gas tech services) is driving an all time high IET backlog, building strong visibility into future revenue and supporting sustained earnings durability.

Read the complete narrative.

Curious how slow top line growth, steady margins, and a richer future earnings multiple can still justify upside from here. Want the full playbook behind that math.

Result: Fair Value of $52.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost inflation and ongoing reliance on volatile upstream spending could pressure margins and stall the higher multiple that this narrative depends on.

Find out about the key risks to this Baker Hughes narrative.

Build Your Own Baker Hughes Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a personalized thesis in under three minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Baker Hughes.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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