Liberty Energy (LBRT): Revisiting Valuation After New Dual Listing on NYSE Texas

Liberty Energy (NYSE:LBRT) just revealed it will dual list its common stock on the brand-new NYSE Texas exchange, in addition to its primary New York listing. This strategic step could attract fresh investor attention and spark higher trading activity.

See our latest analysis for Liberty Energy.

The dual listing announcement capped off a stretch of impressive share price momentum for Liberty Energy, with a 1-day return of 11.09% and a 7-day jump of 24.69%. While this recent surge stands out, the 1-year total shareholder return of 13.57% highlights that long-term gains remain positive despite some choppiness earlier in the year. Leadership changes and recent earnings indicate an evolving story, which suggests that momentum may be building again as investors take note.

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This uptick in momentum raises a crucial question for investors: Is Liberty Energy trading below its true value, or has the market already factored in all the upcoming potential for growth?

Most Popular Narrative: 33.8% Overvalued

Liberty Energy’s most widely followed narrative sets its fair value far below the recent closing price of $18.94. This suggests the current rally may be running ahead of fundamentals. The debate centers on whether enough earnings and top-line growth can materialize in coming years to justify these elevated levels.

Liberty’s leadership in next-generation technology, including its digiPrime/digiFleet natural gas-powered frac solutions and modular, low-emission power generation, is enabling market share gains, operational efficiencies, longer asset life, and stronger pricing with top-tier customers. These factors are supporting improved margins and higher free cash flow.

Read the complete narrative.

Want to discover the crucial growth levers underpinning this lofty price? The narrative hints at a radical shift in future profit quality and industry dominance. Curious what bold projections drive the high valuation? Peek into the full narrative and see which numbers are lighting up analysts’ models.

Result: Fair Value of $14.15 (OVERVALUED)

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

However, a significant slowdown in completions activity or prolonged weakness in oilfield demand could quickly challenge even the most bullish outlook for Liberty Energy.

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

Another View: Market Ratios Tell a Different Story

Taking a fresh look through the lens of valuation ratios, Liberty Energy trades at 16.5 times earnings, almost double its fair ratio of 8x. That also edges above the US Energy Services industry average of 16.3x, and stands out as a bargain compared to peers at 48.1x. This split raises important questions for investors. Does the higher valuation signal confidence about the future, or expose risk if growth doesn’t materialize?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Liberty Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 854 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Liberty Energy Narrative

If you see Liberty Energy’s story unfolding differently, or just want to dig into the numbers personally, you can craft a perspective of your own in just a few minutes. Do it your way

A great starting point for your Liberty Energy research is our analysis highlighting 1 key reward and 4 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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