Ormat Technologies (ORA): Evaluating Valuation After Strategic Enhanced Geothermal Partnership With SLB

Ormat Technologies (ORA) just unveiled a new partnership with SLB to develop and commercialize enhanced geothermal systems. This collaboration aims to fast-track next-generation geothermal technology and could reshape how geothermal energy is deployed globally.

See our latest analysis for Ormat Technologies.

Ormat’s latest collaboration news comes as the company is experiencing positive momentum, with its share price up 53.9% year-to-date and a one-year total shareholder return of 36%. Investors appear to be taking notice of both its ambitious technology initiatives and strengthening fundamentals, as performance over the past quarter has been particularly strong.

If this pivot toward advanced geothermal tech has you watching the sector more closely, now is a perfect moment to broaden your search and discover fast growing stocks with high insider ownership

With the stock up sharply in 2025 and trading just below average analyst targets, it is worth asking whether Ormat is undervalued relative to its growth potential or if the market has already accounted for future gains.

Most Popular Narrative: 3.3% Overvalued

While Ormat’s most-followed narrative points to a fair value of $103, the stock’s last close at $106.37 puts it slightly above this mark. This sets the stage for the underlying debate around whether Ormat’s recent gains fully reflect its future growth and project pipeline.

Recent federal permitting reforms and policy support have significantly expedited geothermal project development timelines in the U.S., enabling Ormat to accelerate greenfield expansion and release more projects for construction, likely driving faster revenue growth and increased long-term cash flows.

Extension of production and investment tax credits (PTC/ITC) for geothermal and energy storage projects through at least 2033 reduces capital costs, de-risks new project development, and boosts net margins and earnings over the next decade.

Read the complete narrative.

Want to know the logic behind the fair value? The narrative relies on a blend of aggressive revenue targets and stable margins, all underpinned by bold future earnings projections. Which assumptions drive such a premium? There is more to the valuation story than meets the eye. Find out what analysts are betting on beneath the surface.

Result: Fair Value of $103 (OVERVALUED)

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

However, looming regulatory changes for imported batteries and rising capital costs could quickly dampen Ormat’s growth trajectory and long-term earnings outlook.

Find out about the key risks to this Ormat Technologies narrative.

Build Your Own Ormat Technologies Narrative

If you want to challenge these assumptions or dig deeper into the fundamentals, you can independently build your own Ormat Technologies outlook in just a few minutes. Do it your way

A great starting point for your Ormat Technologies research is our analysis highlighting 1 key reward 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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