Highly Regarded

Is Schlumberger Limited (SLB) Stock Undervalued or Overvalued?

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

In Line TTM fundamentals · sector averages from covered peers

SLB trades at 25.6× TTM earnings — roughly in line with its Energy sector average of 23.7×.

The Numbers

P/E (TTM)

25.6×

Sector avg: 23.7×

P/S (TTM)

2.5×

Sector avg: 2.3×

Market Cap

$89.91B

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 $60.13 25.6×
XOM $160.96 23.4×
CVX $206.17 29.0×
COP $132.53 18.7×

Is the Multiple Justified?

August 30, 2026

Schlumberger Limited (SLB) currently trades at a P/E multiple of 24.4x, a slight premium compared to its sector average of 23.5x. This valuation reflects the company's strategic initiatives and recent financial performance. SLB reported robust Q2 2026 earnings, with EPS exceeding analyst expectations and revenue increasing 5% year-on-year. The company's strategic pivot towards digital solutions and new energy verticals, including its Data Center Solutions business which saw 63% year-on-year growth in the first half of 2026, is a key driver. Furthermore, the acquisition of ChampionX in Q3 2025 has significantly contributed to revenue and adjusted EBITDA, bolstering its financial profile. Healthy margins, with an EBITDA margin of 17.8% and gross margin of 37.4%, are also supporting this valuation, driven by a favorable mix shift towards higher-margin services. While geopolitical disruptions in the Middle East have presented some headwinds, SLB's strong cash flow generation and commitment to shareholder returns through dividends and buybacks underscore investor confidence.

Sources

Frequently Asked Questions

Is SLB overvalued or undervalued?
On trailing-twelve-month earnings, SLB trades at 25.6x versus a Energy sector average of 23.7x in our coverage — a 7.9% premium. 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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COP XOM CVX