Assessing Golar LNG (NasdaqGS:GLNG)’s Valuation After Its Recent Share Price Rebound
Golar LNG (GLNG) has quietly outperformed the broader energy sector over the past month, gaining about 6%, even as its past 3 months and year to date returns remain negative.
See our latest analysis for Golar LNG.
That recent 1 month share price return of 5.54% looks more like a relief rally than a full trend change, given the weaker year to date share price performance and still solid 5 year total shareholder return of 350.46%.
If Golar’s move has you watching the energy space more closely, it could be a good time to see what else is gaining traction with fast growing stocks with high insider ownership.
With shares still below analyst targets but long term returns far from cheap looking, investors now face a key question: is Golar LNG quietly undervalued, or is the market already pricing in its next wave of growth?
Most Popular Narrative Narrative: 25.5% Undervalued
With Golar LNG last closing at $38.09 versus a narrative fair value near $51, the current price implies investors may be underestimating its long term cash generation.
The company has secured long-term (20-year) charters for its existing FLNG units, providing $17 billion in contracted EBITDA backlog and 20 years of cash flow visibility, which is expected to drive a significant (4x) increase in EBITDA and contracted free cash flow by 2028. This may indicate the market is undervaluing its forward earnings stability and revenue growth.
Want to see the math behind that backlog driven upside? The valuation leans on aggressive earnings expansion, richer margins, and a premium future multiple. Curious which assumptions really move the needle?
Result: Fair Value of $51.10 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative could crack if LNG demand underwhelms or new FLNG capacity floods the market, which would pressure charter rates, utilization, and earnings.
Find out about the key risks to this Golar LNG narrative.
Another View: Rich Multiples, Different Story
While the narrative fair value suggests upside, traditional valuation signals are flashing caution. Golar trades on a P E ratio of 65.2 times, far above the industry average of 12.8 times and a fair ratio of 18.5 times. This hints that expectations may already be stretched.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Golar LNG Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.
A great starting point for your Golar LNG research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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