Latest Ratios: P/E Ratio 20.9x · EV/EBITDA 12.1x · ROE 14.4%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $54.0B | $45.3B | $41.1B | $34.7B | $29.1B | $19.8B | $14.1B | $14.3B | $9.3B | $13.5B | $19.6B |
| Enterprise Value | $57.5B | $48.7B | $43.7B | $38.1B | $33.3B | $22.7B | $17.6B | $17.6B | $12.9B | $14.8B | $18.9B |
| P/E Ratio → | 20.95 | 17.52 | 13.77 | 17.90 | — | — | — | 111.43 | 47.78 | — | 48.38 |
| P/S Ratio | 1.95 | 1.63 | 1.48 | 1.36 | 1.38 | 0.97 | 0.68 | 0.60 | 0.41 | 0.79 | 1.47 |
| P/B Ratio | 2.85 | 2.38 | 2.41 | 2.24 | 2.01 | 1.18 | 0.77 | 0.41 | 0.27 | 0.35 | 1.32 |
| P/FCF | 21.29 | 17.84 | 19.99 | 18.88 | 26.12 | 10.82 | 27.22 | 12.41 | 12.15 | — | — |
| P/OCF | 14.18 | 11.88 | 12.32 | 11.33 | 15.44 | 8.35 | 10.79 | 6.71 | 5.29 | — | 74.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.76 | 1.57 | 1.49 | 1.57 | 1.11 | 0.85 | 0.74 | 0.56 | 0.86 | 1.42 |
| EV / EBITDA | 12.11 | 10.26 | 9.68 | 10.21 | 11.29 | 9.40 | 8.84 | 7.08 | 5.91 | 18.11 | 18.72 |
| EV / EBIT | 16.15 | 15.71 | 12.62 | 13.26 | 121.59 | 31.22 | 26.15 | 17.83 | 16.92 | — | 27.48 |
| EV / FCF | — | 19.19 | 21.29 | 20.71 | 29.85 | 12.38 | 33.99 | 15.35 | 16.85 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.6% | 23.6% | 23.3% | 23.1% | 23.4% | 22.1% | 18.0% | 18.6% | 17.4% | 17.7% | 23.7% |
| Operating Margin | 12.8% | 12.8% | 12.2% | 10.4% | 8.9% | 6.4% | 3.2% | 4.5% | 3.1% | -1.7% | 3.4% |
| Net Profit Margin | 9.3% | 9.3% | 10.7% | 7.6% | -2.8% | -1.1% | -48.0% | 0.5% | 0.9% | -0.4% | 1.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.4% | 14.4% | 18.3% | 12.9% | -3.8% | -1.3% | -37.7% | 0.4% | 0.5% | -0.2% | 1.7% |
| ROA | 6.5% | 6.5% | 7.9% | 5.5% | -1.7% | -0.6% | -21.8% | 0.2% | 0.4% | -0.2% | 1.1% |
| ROIC | 12.7% | 12.7% | 13.1% | 10.5% | 7.4% | 4.8% | 1.7% | 2.1% | 1.3% | -0.8% | 2.5% |
| ROCE | 13.6% | 13.6% | 13.7% | 11.2% | 7.7% | 4.8% | 1.9% | 2.5% | 1.5% | -0.9% | 2.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.38 | 0.38 | 0.35 | 0.39 | 0.46 | 0.40 | 0.42 | 0.19 | 0.21 | 0.22 | 0.02 |
| Debt / EBITDA | 1.51 | 1.51 | 1.33 | 1.62 | 2.26 | 2.79 | 3.84 | 2.66 | 3.35 | 10.19 | 0.28 |
| Net Debt / Equity | — | 0.18 | 0.16 | 0.22 | 0.29 | 0.17 | 0.19 | 0.10 | 0.10 | 0.03 | -0.05 |
| Net Debt / EBITDA | 0.72 | 0.72 | 0.59 | 0.91 | 1.41 | 1.19 | 1.76 | 1.35 | 1.65 | 1.61 | -0.70 |
| Debt / FCF | — | 1.35 | 1.29 | 1.84 | 3.74 | 1.57 | 6.77 | 2.93 | 4.70 | — | — |
| Interest Coverage | 13.96 | 13.96 | 17.49 | 13.29 | 1.09 | 2.43 | 2.55 | 4.18 | 3.43 | -1.64 | 6.73 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.32 | 1.25 | 1.32 | 1.65 | 1.61 | 1.52 | 1.66 | 2.00 | 1.50 |
| Quick Ratio | 1.00 | 1.00 | 0.94 | 0.86 | 0.90 | 1.21 | 1.18 | 1.06 | 1.15 | 1.51 | 0.85 |
| Cash Ratio | 0.36 | 0.36 | 0.26 | 0.20 | 0.22 | 0.42 | 0.40 | 0.32 | 0.41 | 0.76 | 0.20 |
| Asset Turnover | — | 0.68 | 0.73 | 0.69 | 0.62 | 0.58 | 0.54 | 0.45 | 0.44 | 0.30 | 0.61 |
| Inventory Turnover | 4.28 | 4.28 | 4.31 | 3.85 | 3.53 | 4.01 | 3.84 | 4.21 | 4.09 | 3.14 | 3.14 |
| Days Sales Outstanding | — | 87.40 | 93.41 | 101.25 | 102.79 | 100.61 | 99.11 | 98.24 | 95.23 | 127.80 | 70.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 2.0% | 2.0% | 2.3% | 2.5% | 3.0% | 3.5% | 2.8% | 3.4% | 1.1% | — |
| Payout Ratio | 35.2% | 35.2% | 28.1% | 40.5% | — | — | — | 308.6% | 161.5% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 5.7% | 7.3% | 5.6% | — | — | — | 0.9% | 2.1% | — | 2.1% |
| FCF Yield | 4.7% | 5.6% | 5.0% | 5.3% | 3.8% | 9.2% | 3.7% | 8.1% | 8.2% | — | — |
| Buyback Yield | 0.7% | 0.8% | 1.2% | 1.6% | 2.8% | 2.2% | 0.0% | 1.8% | 26.7% | 3.5% | 0.0% |
| Total Shareholder Yield | 2.4% | 2.9% | 3.2% | 3.8% | 5.3% | 5.2% | 3.5% | 4.5% | 30.1% | 4.7% | 0.0% |
| Shares Outstanding | — | $994M | $1.0B | $1.0B | $987M | $824M | $675M | $557M | $433M | $427M | $430M |
LNG project cycle dependency
Based on recent market data, BKR trades at a 21.75x trailing P/E, suggesting that investors are pricing in a premium for its industrial technology exposure compared to traditional oilfield service peers, despite the inherent cyclicality of its underlying energy infrastructure business model and recent revenue growth stagnation.
The current forward P/E of 23.69 indicates that the market expects earnings expansion, likely driven by the IET segment's long-cycle backlog. However, this valuation appears stretched when compared to the broader industrial sector, warranting caution if the anticipated margin expansion from the 'New Energy' transition fails to materialize.
According to reported financial statements, BKR's ROIC has struggled to break above the 3-4% range for most of the last ten quarters, with the 13.9% spike in 2026Q1 appearing as an outlier likely driven by non-recurring accounting adjustments rather than a fundamental improvement in capital productivity.
The persistent gap between the company's cost of capital and its historical ROIC suggests that the business is still in a phase of capital-intensive restructuring. Investors should monitor whether the company can sustain higher returns on invested capital as it shifts focus toward higher-margin industrial software and turbomachinery services.
As reported in recent filings, the cash conversion cycle has remained elevated, peaking at 112 days in 2026Q1, which highlights the significant working capital drag inherent in managing long-cycle, project-based contracts compared to the more transactional nature of traditional oilfield service providers like Halliburton or SLB.
The high DSO and DIO figures suggest that BKR is effectively financing its customers' projects, which creates a structural strain on cash flow. This inefficiency appears to be a byproduct of the IET segment's project-based revenue recognition, which necessitates a more defensive liquidity position than the company's peers.
Based on BKR's reported figures, the debt-to-equity ratio rose to 0.73 in 2026Q1 from a baseline of 0.35 in early 2025, indicating a strategic shift toward debt-financed growth that warrants close monitoring as the company navigates the capital-intensive requirements of its global LNG infrastructure project backlog.
While the interest coverage ratio remains relatively comfortable at 49.30x, the rapid increase in total debt levels suggests that the company is leveraging its balance sheet to fund strategic initiatives. This transition from a conservative capital structure to a more leveraged one increases the company's sensitivity to interest rate volatility.
The most commonly misapplied metric for BKR is the standard P/E ratio, which fails to account for the significant non-recurring restructuring charges and percentage-of-completion accounting nuances that frequently distort the company's reported net income and mask the underlying cash-generating potential of its industrial technology business.
Analysts should instead prioritize EV/EBITDA or FCF-based valuation models to strip away the noise of accounting adjustments and restructuring costs. Relying on P/E ratios risks misclassifying BKR as a cyclical service provider, thereby obscuring the value of its long-term, recurring service tails in the industrial gas sector.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying BKR stock.
Baker Hughes Company's current P/E ratio is 20.9x. The historical average is 42.8x. This places it at the 50th percentile of its historical range.
Baker Hughes Company's current EV/EBITDA is 12.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Baker Hughes Company's return on equity (ROE) is 14.4%. The historical average is 0.1%.
Based on historical data, Baker Hughes Company is trading at a P/E of 20.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Baker Hughes Company's current dividend yield is 1.68% with a payout ratio of 35.2%.
Baker Hughes Company has 23.6% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Baker Hughes Company's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.