GLNG
Golar LNG Limited
$51.07
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 4.9% below fair value
You pay
$51.07
Bear
$42.96
Fair
$53.71
Bull
$64.45
Bear
$42.96
-15.9%
$2.45 × 16x P/E
Fair
$53.71
+5.2%
$2.45 × 20x P/E
Bull
$64.45
+26.2%
$2.45 × 24x P/E
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
20.9x
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 $66.00 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $53.71 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.
Wall Street's average price target is $66.00 (from 48 analysts). Our estimate is 27% below the consensus -- consider that gap carefully.
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