Baker Hughes (BKR) stock is in focus after a multi-year contract with Kuwait Oil Company that positioned it as a core technology partner in the Ahmadi Innovation Valley upstream initiative.

The Kuwait and Indonesia contracts arrive alongside a supportive backdrop in North American rig activity, and the share price seems to reflect that momentum, with a 15.85% 1 month share price return, a 37.51% year to date share price return, and a 255.87% 5 year total shareholder return.

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Baker Hughes now sits on fresh contract wins, rising rig activity and a strong recent share price run. The business looks solid. The next question is whether the current valuation still provides enough comfort for investors.

Most Popular Narrative: 9% Undervalued

The most followed narrative values Baker Hughes at $71.24 per share, compared with the recent close around $64.82. That gap is grounded in explicit assumptions about future earnings, margins and the required return on equity.

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.

Want to see what sits behind that backlog story? The key pieces are measured revenue growth, slightly lower margins and a higher future earnings multiple than today. Curious how those levers combine into a higher fair value for Baker Hughes.

Result: Fair Value of $71.24 (UNDERVALUED)

However, Baker Hughes still faces meaningful risks if LNG and gas tech demand softens, or if tariffs and supply chain costs squeeze the margins that analysts are banking on.

Next Steps

If this Baker Hughes story looks compelling on the surface, quickly examine the details yourself and form your own view using the 4 key rewards.

Looking for more investment ideas beyond 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.