LNG
Cheniere Energy, Inc.
$264.12
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 40.9% below fair value
You pay
$264.12
Bear
$357.43
Fair
$446.78
Bull
$536.13
Bear
$357.43
+35.3%
$24.13 × 17x P/E
Fair
$446.78
+69.2%
$24.13 × 21x P/E
Bull
$536.13
+103.0%
$24.13 × 25x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
10.9x
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 $272.43 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $446.78 per share.
Warnings
Wall Street's average price target is $272.43 (from 27 analysts). Our estimate is 85% above 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