Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers exploration, drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, wireline services, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping systems, oilfield and industrial chemicals, and artificial lift technologies for oil and natural gas, and oilfield service companies. The OFE segment provides subsea and surface wellheads, pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions, including well intervention and decommissioning solutions; and services related to onshore and offshore drilling and production operations. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, downstream, onshore, offshore, and industrial customers. The DS segment provides sensor-based process measurements, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and pipeline integrity solutions. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	21,156	25,506	27,829	27,412.8	27,835.2	28,797.1	28,797.1	28,797.1
Revenue % Chg.	3.2%	20.6%	9.1%
EBIT	1,928	2,647	3,392	3,611.7	3,864.2	4,323.5	4,323.5	4,323.5
EBIT Margin	9.1%	10.4%	12.2%
Tax Rate	2,727.3%	25.8%	7.9%
NOPAT	-50,653.8	1,964.1	3,125	2,662	2,840.2	3,177.8	3,177.8	3,177.8
NOPAT Margin	-239.4%	7.7%	11.2%	9.7%	10.2%	11%	11%	11%
D&A	1,061	1,087	1,136	1,142.3	1,165.6	1,199.3	1,199.3	1,199.3
D&A / Revenue	5%	4.3%	4.1%
Capex	-989	-1,224	-1,278	-1,212	-1,235	-1,301.9	-1,301.9	-1,301.9
Capex / Revenue	-4.7%	-4.8%	-4.6%
Chg. NWC	211	463	-53	239.6	243.3	251.7	251.7	251.7
Chg. NWC / Revenue	1%	1.8%	-0.2%
Unlevered FCF (UFCF)	-50,370.8	2,290.1	2,930	2,831.9	3,014.1	3,326.8	3,326.8	3,326.8
UFCF % Chg.	10,359.5%	-104.5%	27.9%	-3.3%	6.4%	10.4%	—	—
PV of UFCF	—	—	—	2,738.4	2,818.3	3,008	2,908.6	2,812.6
Sum of PV of UFCF	—	—	—	2,738.4	5,556.7	8,564.7	11,473.3	14,285.9

Cost of Debt
Tax Rate
After Tax Cost of Debt	-35.4%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.6%
Total Debt	6,696
Market Cap	49,940.6
Total Capital	56,636.6
Debt Weighting	11.8%
Equity Weighting	88.2%
WACC	3.4%

Exit Multiple EV/FCF
Terminal Value	53,474.6
PV of Terminal Value	43,716.2
Cumulative PV of UFCF	14,285.9
Net Debt	3,363
Equity Value	54,639.1
Shares Outstanding	986.8
Implied Share Price	55.4
Current Share Price	50.6
Implied Upside / (Downside)	9.4%