Ormat Technologies (ORA) Valuation After Strong Q3 Beat, Higher Guidance and Double-Digit Operating Income Growth

Ormat Technologies (ORA) just cleared a key hurdle for 2025, topping third quarter earnings expectations, lifting its full year revenue outlook, and posting a double digit jump in operating income.

See our latest analysis for Ormat Technologies.

That upbeat earnings surprise fits neatly with the trend in its stock, with the share price at $112.64 and a strong year to date share price return suggesting momentum is building, while multi year total shareholder returns point to steady, compounding gains.

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With earnings accelerating, guidance rising, and the share price hovering just below analyst targets, the key question now is whether Ormat still trades at a meaningful discount or if the market is already fully pricing in its future growth.

Most Popular Narrative Narrative: 4.2% Undervalued

With Ormat Technologies last closing at $112.64 versus a narrative fair value of $117.60, the dominant storyline points to modest upside still on the table.

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 see why a steady, mid single digit uplift in fair value hinges on tightly calibrated revenue growth, resilient margins, and a premium future earnings multiple? The full narrative unpacks how those expectations stack up against today’s price and what needs to go right for that outlook to hold.

Result: Fair Value of $117.60 (UNDERVALUED)

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

However, significant capital needs and heavy reliance on Chinese sourced batteries could squeeze returns if funding costs rise or new trade restrictions emerge.

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

Another Angle on Valuation

Not everyone sees Ormat as modestly undervalued. On earnings, the stock trades on a steep 51.3 times ratio, versus about 18.5 times for peers and a 16.8 times industry average, and well above a 22.7 times fair ratio, which suggests meaningful downside risk if sentiment cools.

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

Build Your Own Ormat Technologies Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way.

A great starting point for your Ormat Technologies research is our analysis highlighting 2 key rewards 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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