Is It The Right Time To Buy Golar LNG Limited (NASDAQ:GLNG)?
Golar LNG Limited (NASDAQ:GLNG), an energy company based in Bermuda, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Golar LNG’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Golar LNG
What is Golar LNG worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10% above my intrinsic value, which means if you buy Golar LNG today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $28.15, there’s only an insignificant downside when the price falls to its real value. Furthermore, it seems like Golar LNG’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Golar LNG look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. In the upcoming year, Golar LNG’s earnings are expected to increase by 92.94%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? GLNG’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on GLNG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Golar LNG. You can find everything you need to know about Golar LNG in the latest infographic research report. If you are no longer interested in Golar LNG, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
