FLNG
FLEX LNG Ltd.
$31.96
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 31.8% below fair value
You pay
$31.96
Bear
$37.49
Fair
$46.87
Bull
$56.24
Bear
$37.49
+17.3%
$2.22 × 17x P/E
Fair
$46.87
+46.6%
$2.22 × 21x P/E
Bull
$56.24
+76.0%
$2.22 × 25x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
14.4x
Summary
Applying a 21x P/E to adjusted EPS of $2.22, the base-case value is $46.87 per share. DDM cross-check: $56.04.
Warnings
The company's reported profits differ from official accounting profits by 61%. Check what costs are being left out of the adjusted number.
The company pays out 217% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples