GNE
Genie Energy Ltd.
$14.21
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 8.0% below fair value
You pay
$14.21
Bear
$13.52
Fair
$15.45
Bull
$17.38
Bear
$13.52
-4.9%
$0.92 × 15x P/E
Fair
$15.45
+8.7%
$0.92 × 17x P/E
Bull
$17.38
+22.3%
$0.92 × 19x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
15.5x
Summary
Applying a 17x P/E to adjusted EPS of $0.92, the base-case value is $15.45 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