Excelerate Energy (NYSE:EE): Is the Current Valuation Justified After Recent Share Price Movements?

Excelerate Energy (NYSE:EE) has caught some attention recently as investors review its latest stock movements and financial growth. With shares showing mixed results over the past month, many are exploring what might shape expectations from this point forward.

See our latest analysis for Excelerate Energy.

While Excelerate Energy's share price bounced around over the past quarter, the bigger story is its 9.7% total shareholder return over the last year, which stands out despite a year-to-date price drop. The mix of robust total returns and recent price softness might suggest investors are weighing potential growth against ongoing market uncertainties.

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This leaves investors wondering whether, with shares trading nearly 30 percent below the average analyst price target and strong revenue growth on the books, Excelerate Energy is currently undervalued or if the market is already factoring in all of its future potential.

Most Popular Narrative: 23% Undervalued

With Excelerate Energy last closing at $25.56 and the most widely-followed narrative assigning a fair value over $33, the stock looks attractively discounted by consensus projections. But what's fueling the optimism that drives this higher fair value?

More than 90% of adjusted EBITDA is now anchored by long-term, take-or-pay contracts, many in regions urgently seeking diversified energy sources to enhance energy security in response to global geopolitical unrest. This high contract coverage increases future earnings visibility and margin stability.

Read the complete narrative.

Want to know the catalyst behind this bullish price target? The secret lies in aggressive growth plans tied to global contracts and a profitability jump not often seen in energy stocks. Find out which highly optimistic financial assumptions could be driving this premium, and why analysts believe the company's strategic moves will reshape its valuation story.

Result: Fair Value of $33 (UNDERVALUED)

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

However, future gains could be threatened if global clean energy adoption accelerates or if Excelerate struggles to secure new contracts in volatile markets.

Find out about the key risks to this Excelerate Energy narrative.

Another View: Earnings Multiple Sends a Different Signal

While the analyst consensus says Excelerate Energy is undervalued, looking at its price-to-earnings ratio tells a different story. At 22.7x, the ratio is much higher than both the industry average of 12.9x and the fair ratio of 18.6x. This suggests investors are paying a premium for future growth. Is there more risk than reward in this case?

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

Build Your Own Excelerate Energy Narrative

If you think there’s another angle to the story or you want to dig into the numbers yourself, crafting your own perspective takes just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Excelerate Energy.

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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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