GNE
Genie Energy Ltd.
$16.52
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 7.5% above fair value
You pay
$16.52
Bear
$13.44
Fair
$15.36
Bull
$17.28
Bear
$13.44
-18.6%
$0.91 × 15x P/E
Fair
$15.36
-7.0%
$0.91 × 17x P/E
Bull
$17.28
+4.6%
$0.91 × 19x P/E
Adjust Assumptions
16.9x
0.91$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
18.2x
Summary
Applying a 17x P/E to adjusted EPS of $0.91, the base-case value is $15.36 per share.
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