A Look at SFL Corp (NYSE:SFL) Valuation Following University of Alberta Satellite Contract

SFL (NYSE:SFL) has just secured a contract with the University of Alberta to develop the RADICALS satellite, a project focused on measuring space radiation’s effects on Earth’s climate. This contract highlights SFL’s capabilities in advanced spacecraft design.

See our latest analysis for SFL.

The new University of Alberta contract comes at a time when SFL’s share price has largely moved sideways, with the 1-year total shareholder return down less than 1% even as broader market momentum has shifted. While the latest development hints at growth potential, investors will be watching to see whether SFL can convert technical expertise into sustainable long-term gains.

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With SFL shares trading well below analyst price targets, is there a real buying opportunity here, or has the market already accounted for any upside from this latest contract and future growth prospects?

Most Popular Narrative: 25.7% Undervalued

The most widely discussed narrative highlights SFL’s fair value as notably above its recent close, presenting the current price as a bargain in the eyes of its followers. This gap draws attention to interesting expectations about SFL’s earnings trajectory and underlying business model.

SFL's diversified fleet structure, with significant exposure to container vessels and strong, long-term charters to investment-grade counterparties, provides stable recurring revenue streams, high fleet utilization (98%+), and resilience against market volatility. These factors underpin predictable earnings and dividend coverage.

Read the complete narrative.

Which underlying assumptions power such a high estimate? There is a twist, as analysts are banking on future profit improvements and operational moves rarely seen together in shipping. Find out which aggressive assumptions make or break this story’s math in the complete breakdown.

Result: Fair Value of $10.18 (UNDERVALUED)

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

However, substantial exposure to oil markets and heavy reliance on container shipping could quickly challenge these bullish projections if broader trade or regulatory dynamics shift.

Find out about the key risks to this SFL narrative.

Build Your Own SFL Narrative

If you see the story differently or want to dig into the numbers on your own terms, you can build your own narrative in just a few minutes, and Do it your way.

A great starting point for your SFL research is our analysis highlighting 3 key rewards 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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