Baker Hughes seems to be under valued based on Macroaxis valuation methodology. Macroaxis approximates value of Baker Hughes Incorporated from analyzing the firm fundamentals such as Current Valuation of 22.13B, Return On Equity of
(13.49)% and Profit Margin of (19.99)% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.
Valuation Drivers Correlation
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Baker Hughes Incorporated is rated third in price to sales category among related companies. It is rated below average in price to book category among related companies fabricating about 0.76 of Price to Book per Price to Sales. The ratio of Price to Sales to Price to Book for Baker Hughes Incorporated is roughly 1.31
Baker Hughes is abnormally risky asset. Calculation of real value of Baker Hughes Incorporated is based on 1 month time horizon. Increasing Baker Hughes Incorporated time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.