• If you are trying to figure out whether Halliburton stock still offers value after a strong run, the current setup makes the valuation story especially important.
• The stock last closed at US$34.67, with a 71.9% return over the past year and 17.1% year to date, while also pulling back 15.6% over the past month and 0.7% over the past week. These moves may influence how you think about both upside potential and risk.
• Recent coverage around Halliburton has focused on its position as a major oilfield services provider and how energy sector sentiment is feeding into the stock price. Broader discussions about capital spending in oil and gas, as well as investor appetite for energy services stocks, help frame why short term returns have differed from the longer term picture.
• On Simply Wall St's valuation checks, Halliburton currently scores 6 out of 6. This sets the stage for a closer look at how metrics like DCF, P/E and other approaches line up today, and why there may be an even better way to think about valuation by the end of this article.

Approach 1: Halliburton Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what Halliburton stock could be worth by projecting future cash flows and discounting them back to today’s value. It focuses on cash the company might generate for shareholders rather than short term market swings.

Halliburton’s latest twelve month Free Cash Flow (FCF) is about $1.52b. Using a 2 Stage Free Cash Flow to Equity model, analysts and extrapolated estimates project FCF reaching about $2.76b in 2030, with a path that includes figures such as $1.86b in 2026 and $2.55b in 2028. Simply Wall St uses analyst inputs where available, then extends the series beyond the explicit forecast period.

Discounting those projected cash flows back to today, the DCF output suggests an estimated intrinsic value of about $64.98 per share. Compared with Halliburton’s recent share price of $34.67, the model implies the stock is around 46.6% below this intrinsic value, which points to a materially undervalued reading on this methodology.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Halliburton is undervalued by 46.6%. Track this in your watchlist or portfolio, or discover 43 more high quality undervalued stocks.

Approach 2: Halliburton Price vs Earnings

For a profitable company like Halliburton, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings. It links share price directly to current earnings, which many investors watch closely when judging how demanding or relaxed a valuation looks.

What counts as a "normal" P/E depends on how the market views a company’s growth potential and risk profile. Higher growth and lower perceived risk tend to support a higher multiple, while slower growth or higher uncertainty usually point to a lower one.

Halliburton currently trades on a P/E of 18.81x, compared with an Energy Services industry average P/E of about 26.24x and a peer group average of 19.32x. Simply Wall St also calculates a proprietary "Fair Ratio" of 22.24x for Halliburton. This Fair Ratio is designed to represent the P/E that might be expected given factors such as earnings growth, profit margins, industry, market cap and company specific risks.

Because this Fair Ratio incorporates more company specific inputs than a simple peer or industry comparison, it can offer a more tailored anchor for valuation. With Halliburton’s actual P/E of 18.81x sitting below the Fair Ratio of 22.24x, this approach points to the stock looking undervalued on this metric.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Halliburton Narrative

Earlier the article mentioned that there is an even better way to understand valuation, so this is where Narratives come in as a simple way to connect your view of Halliburton with the numbers on Simply Wall St.

A Narrative is your story for the stock, where you set your own assumptions for fair value, future revenue, earnings and margins, then link that story directly to a forecast and a price you feel is reasonable.

On Simply Wall St, Narratives live on the Community page and are used by many investors as an accessible tool that helps compare each Narrative’s fair value to the current price, update those views automatically when new earnings or news are released, and support real world decisions about whether Halliburton appears attractive or stretched at any point in time.

For example, one Halliburton Narrative might assume a relatively high fair value and strong margins based on expectations for oilfield services demand, while another could use a much lower fair value with more conservative revenue and margin assumptions, leading to different conclusions about the same stock.

Do you think there's more to the story for Halliburton? Head over to our Community to see what others are saying!

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.