Cheniere Energy, Inc.

NYSE:LNG Stock Report

Market Cap: US$50.5b

Cheniere Energy Valuation

Is LNG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LNG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNG ($222.6) is trading below our estimate of fair value ($222.74)

Significantly Below Fair Value: LNG is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNG?

Key metric: As LNG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LNG. This is calculated by dividing LNG's market cap by their current earnings.
What is LNG's PE Ratio?
PE Ratio13.7x
EarningsUS$3.65b
Market CapUS$50.48b

Price to Earnings Ratio vs Peers

How does LNG's PE Ratio compare to its peers?

The above table shows the PE ratio for LNG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
TRGP Targa Resources
36.7x16.0%US$45.3b
MPLX MPLX
11.7x3.7%US$49.2b
KMI Kinder Morgan
25.1x8.1%US$63.4b
WMB Williams Companies
25.2x3.0%US$72.8b
LNG Cheniere Energy
13.7x-8.3%US$50.5b

Price-To-Earnings vs Peers: LNG is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does LNG's PE Ratio compare vs other companies in the US Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
LNG 13.7xIndustry Avg. 11.6xNo. of Companies18PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LNG is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the US Oil and Gas industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is LNG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: LNG is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LNG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$222.60
US$214.05
-3.8%
8.5%US$265.00US$182.12n/a22
Nov ’25US$187.55
US$209.41
+11.7%
6.5%US$232.00US$182.12n/a22
Oct ’25US$181.30
US$204.39
+12.7%
6.3%US$226.00US$182.00n/a21
Sep ’25US$185.26
US$204.49
+10.4%
5.8%US$226.00US$182.00n/a22
Aug ’25US$179.76
US$200.31
+11.4%
7.7%US$220.00US$161.00n/a22
Jul ’25US$173.08
US$198.95
+14.9%
7.6%US$220.00US$161.00n/a22
Jun ’25US$157.79
US$197.61
+25.2%
7.6%US$217.00US$161.00n/a21
May ’25US$157.03
US$197.27
+25.6%
7.4%US$217.00US$161.00n/a22
Apr ’25US$159.33
US$198.82
+24.8%
6.5%US$223.00US$161.00n/a22
Mar ’25US$156.18
US$199.39
+27.7%
6.5%US$223.00US$161.00n/a23
Feb ’25US$163.00
US$200.09
+22.8%
6.7%US$225.00US$161.00n/a23
Jan ’25US$170.71
US$200.57
+17.5%
6.6%US$228.00US$161.00n/a23
Dec ’24US$181.61
US$198.90
+9.5%
7.1%US$228.00US$161.00n/a23
Nov ’24US$168.63
US$197.43
+17.1%
6.4%US$229.00US$161.00US$187.5523
Oct ’24US$165.96
US$196.14
+18.2%
6.9%US$226.00US$161.00US$181.3021
Sep ’24US$167.34
US$195.16
+16.6%
7.6%US$226.00US$161.00US$185.2619
Aug ’24US$160.25
US$197.25
+23.1%
8.8%US$236.00US$161.00US$179.7620
Jul ’24US$152.36
US$197.75
+29.8%
9.1%US$236.00US$161.00US$173.0820
Jun ’24US$142.23
US$198.40
+39.5%
9.0%US$236.00US$161.00US$157.7920
May ’24US$153.00
US$198.00
+29.4%
9.0%US$236.00US$161.00US$157.0320
Apr ’24US$157.60
US$199.24
+26.4%
8.8%US$236.00US$161.00US$159.3321
Mar ’24US$160.79
US$198.91
+23.7%
9.2%US$236.00US$161.00US$156.1822
Feb ’24US$153.96
US$198.10
+28.7%
9.7%US$236.00US$143.00US$163.0021
Jan ’24US$149.96
US$205.05
+36.7%
9.5%US$245.00US$143.00US$170.7121
Dec ’23US$175.53
US$205.00
+16.8%
9.7%US$245.00US$143.00US$181.6120
Nov ’23US$179.86
US$200.45
+11.4%
10.2%US$236.00US$143.00US$168.6320

Analyst Forecast: Target price is lower than the current share price.

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