Is HAL Really Cheap?
Often stocks will seem like a great deal from a first glance. Sometimes they are, other times it can be a bit more deceiving. So where does Halliburton fit into the picture? Let's investigate further. Anand Chokkavelu does a great job of breaking down the numbers to understand what is really going on here.
"The current price multiples
First, we’ll look at most investors’ favorite metric: the P/E ratio. It divides the company’s share price by its earnings per share (EPS) — the lower, the better….
Halliburton has a P/E ratio of 12.1 and an EV/FCF ratio of 57.5 over the trailing 12 months. If we stretch and compare current valuations to the five-year averages for earnings and free cash flow, Halliburton has a P/E ratio of 13.6 and a five-year EV/FCF ratio of 34.2."
Find additional research here: http://turnkeyoil.com/2011/12/15/is-hal-really-cheap/