Baker Hughes (BKR) stock is in focus after the company reported a significant subsea production systems award from Azule Energy for Angola’s Greater PAJ offshore development, expanding its deepwater equipment and services footprint in Sub-Saharan Africa.

Baker Hughes has attracted fresh attention with this subsea award, yet the share price has recently come under pressure, with the 30-day share price return down 14.53% and the 90-day share price return down 10.86%. At the same time, the 1-year total shareholder return stands at 37.46% and the 5-year total shareholder return at 172.51%, suggesting longer term holders have seen very different outcomes from recent traders.

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With Baker Hughes shares under pressure in the short term but showing strong multi year total returns, the key question now is whether today’s valuation leaves upside on the table or if the market is already pricing in future growth.

Most Popular Narrative: 24.5% Undervalued

The most followed Baker Hughes narrative places fair value at $71.24, compared with the last close at $53.82, framing the recent share pullback against a higher long term valuation anchor.

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.

Curious what sits behind that backlog story and the higher fair value for Baker Hughes? The narrative leans on steady revenue expansion, firm margins and a richer earnings multiple that has to be justified by future execution.

Result: Fair Value of $71.24 (UNDERVALUED)

However, this Baker Hughes narrative depends on oil and gas spending holding up and on large deals clearing regulatory reviews without adding extra cost, delay, or constraints.

Next Steps

If the Baker Hughes story so far sounds compelling but incomplete, take a moment to review the underlying data yourself and pressure test the optimism around its 5 key rewards.

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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.