GLNG Golar LNG Limited
$52.36
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Mild · Conviction

Fair Value

Trading 0.7% below fair value

You pay $52.36
Bear $42.17
Fair $52.71
Bull $63.25
Bear $42.17 -19.5% $2.45 × 16x P/E
Fair $52.71 +0.7% $2.45 × 20x P/E
Bull $63.25 +20.8% $2.45 × 24x P/E

Key Value Driver

Normalized P/E multiple (20x base case)

Implied Market Multiple 21.4x

Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $62.67 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $52.71 per share.

Warnings

The company's reported profits differ from official accounting profits by 277%. Check what costs are being left out of the adjusted number.
The company pays out 154% 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