Tired of being under the gun every quarter to perform to external expectations or risk seeing the stock price get hammered.
Could SLB go private like Dell did?
Workers and families are not casino gambling, their lives are not organized in quarters.
The Mother Frackers created this whole mess and Walll Street seems to hold all the cards.
Upon further review @mjb is correct. A 10x EV / EBITDA multiple is pretty standard for SLB. Since 2011 it's average EV / EBITDA is 10.1x. Going back further to 2005, the multiple was usually closer to 12.5x but overall profit margins were a lot better back then too.
Problem is for the LTM with all the write-downs and taking on all the recent debt, the current EV / EBITDA multiple is close to 40x.
Multiple for OFS is averaging 8.5. SLB is the leader. So there is a premium on the multiple.
10 might be a good number. Maybe a FCF analysis will give us another estimate.
Stock should now be at around $50 based on the multiple of 10.
Has anyone know why SLB took a lot of debt the last quarters? Is-it to weather to storm or is-it a consequence of the Cameron merge?
10 - 11 multiple is too high for a huge company in the middle of a severe industry downturn. That kind of multiple is more in line with the small high growth companies.
I think this valuation is too pessimistic. A EBITDA multiplier to around 10-11 seems to be more reasonable. That would lead to a company valuation of around 66-73 billions range.
SLB seems to be over-valued today. But it is still a great investment for the long term with its geographic reach and its market footprint.