Golar LNG (NasdaqGS:GLNG): Valuation Spotlight After $1.2 Billion Liquidity Boost from FLNG Gimi Refinancing

Golar LNG (NasdaqGS:GLNG) just secured a $1.2 billion asset-backed debt facility from a group of leading global banks to refinance its FLNG Gimi project. This move significantly boosts its available liquidity and future financial flexibility.

See our latest analysis for Golar LNG.

Despite this major refinancing milestone, Golar LNG’s share price momentum has been weak, with a 4.5% dip over the past month and a 16.9% year-to-date drop. This reflects shifting market sentiment. Still, its impressive 360.9% five-year total shareholder return demonstrates how much long-term value can build through strategic moves like these.

If the renewed focus on financial flexibility has you curious about what else is on the move, now is an ideal moment to discover fast growing stocks with high insider ownership

With improved financial flexibility and the stock trading well below analyst targets, the key question is whether Golar LNG is now trading at a discount or if future growth is already priced in. Could this be a buying opportunity?

Most Popular Narrative: 28.7% Undervalued

The last closing price for Golar LNG stands well below the most popular narrative’s fair value, suggesting upside potential if narrative assumptions play out. This sets the stage for a re-assessment of Golar’s market position and future growth path.

The company has secured long-term (20-year) charters for its existing FLNG units, providing $17 billion in contracted EBITDA backlog and 20 years of cash flow visibility. This is expected to drive a significant (4x) increase in EBITDA and contracted free cash flow by 2028, indicating the market may be undervaluing its forward earnings stability and revenue growth.

Read the complete narrative.

Want to know what underpins this high fair value? The narrative hinges on massive contracted growth, ambitious profit projections, and robust margin expansion. Find out what bold forecasts make analysts so optimistic about Golar’s future. Click to see the full story behind these numbers.

Result: Fair Value of $51.10 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, key risks remain, including potential overcapacity in the FLNG sector as well as Golar’s heavy reliance on long-term LNG demand and successful charter execution.

Find out about the key risks to this Golar LNG narrative.

Another View: What Do Valuation Ratios Say?

While the most popular narrative points to Golar LNG being undervalued, looking at the price-to-earnings ratio tells a different story. Golar trades at 62.3 times earnings, which is much higher than both the industry average of 13.2x and its peers at 42.4x. The market's fair ratio for Golar could be around 17.5x. This suggests a substantial premium is being paid today. Is this optimism justified, or is there valuation risk ahead for new buyers?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Golar LNG Narrative

If you see the story differently or want a hands-on look at the numbers, you can easily build your own view in just a few minutes. Do it your way

A great starting point for your Golar LNG research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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