Golar LNG Limited (GLNG)
Energy · NMS · US
Fundamentals
Valuation and ratings
Golar LNG Limited trades at USD49.76, close to the USD48.51 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 69 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 40.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Golar LNG Limited
Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates in two segments, FLNG, and Corporate and Other. It engages in the regasification, storage, and liquefied natural gas (LNG) carrier transportation operations; operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. The company was founded in 1946 and is headquartered in Hamilton, Bermuda.
GLNG passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Golar LNG Limited (GLNG) undervalued?
Against our discounted cash flow estimate of USD48.51, GLNG at USD49.76 is 3% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GLNG's P/E ratio?
GLNG trades at 40.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.