SLB (SLB) Could Be 21% Undervalued After Brazil Survey And TotalEnergies Deal

SLB (SLB) has been active on two fronts this month: expanding its role in exploration support through a new 3D seismic survey offshore Brazil, and deepening its digital well planning footprint with TotalEnergies.

SLB’s latest contracts come as the share price trades at US$49.09, with a year to date share price return of 22.11% and a 1 year total shareholder return of 50.43%. This suggests recent momentum has been strong, even though the 3 year total shareholder return is slightly negative.

Scan beyond SLB and track other energy specialists riding similar contract momentum with our curated list of 43 power grid technology and infrastructure stocks in focus.

SLB has climbed sharply over the past year, yet the share price still sits well below both analyst targets and some fair value estimates. Is that gap an opportunity or a warning sign?

Most Popular Narrative: 21% Undervalued

SLB closed at $49.09, while the most followed narrative assigns a fair value of $62.41 using a 7.63% discount rate. This frames the current gap as a valuation disconnect that hinges on execution in higher margin areas.

Rapid scaling of SLB’s Data Center Solutions business, backed by a backlog that underpins an annualized revenue run rate exceeding US$2 billion by the end of 2027 and medium term targets of US$4.5 billion to US$5.0 billion of data center revenue and US$700 million to US$800 million of adjusted EBITDA in 2028 after the Kelvion acquisition, introduces a large, capital light revenue stream that can add meaningfully to consolidated revenue, EBITDA and cash generation.

See why 163 investors see SLB as 21% undervalued.

Result: Fair Value of $62.41 (UNDERVALUED)

Still, the SLB story can change quickly if Middle East disruptions persist or if the data center and Kelvion integration effort falls short of expectations.

Find out about the key risks to this SLB narrative.

Next Steps

Mixed signals around SLB’s valuation and execution can feel messy. Move quickly from headline takes to your own judgement by weighing the 3 key rewards and 2 important warning signs.

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