Highly Regarded

Is Schlumberger Limited (SLB) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Energy sector peers in our coverage

19% Discount TTM fundamentals · sector averages from covered peers

SLB trades at 20.6× TTM earnings — a 19% discount to its Energy sector average of 25.4× in our coverage.

The Numbers

P/E (TTM)

20.6×

Sector avg: 25.4×

P/S (TTM)

2.0×

Sector avg: 2.4×

Market Cap

$72.31B

EPS (TTM): $2.35

Revenue (TTM)

$35.71B

Net income: $3.45B

Energy Peer Comparison

How SLB's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
SLB This page $48.36 20.6×
XOM $174.69 25.4×
CVX $219.39 30.9×
COP $141.73 20.0×

Is the Discount Justified?

October 11, 2026

SLB's P/E of 20.8x is slightly below the energy sector average of 23.5x. The company recently reported Q2 2026 earnings that surpassed analyst expectations, with an EPS of $0.55, although this marked a decrease from the prior year. Schlumberger is actively pursuing diversification strategies, including expanding its involvement in data center infrastructure and power through strategic alliances. Furthermore, the company is focused on industrializing AI for the energy industry, which could serve as a long-term growth catalyst. However, the current valuation multiple may reflect the inherent cyclicality of the oilfield services sector and the slight year-over-year decline in earnings per share. The market appears to be balancing the potential from new digital ventures against traditional industry dynamics.

Sources

Frequently Asked Questions

Is SLB overvalued or undervalued?
On trailing-twelve-month earnings, SLB trades at 20.6x versus a Energy sector average of 25.4x in our coverage — a 19.1% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing SLB with its own Energy peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Energy names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Energy peers

COP CVX XOM