Updated
Updated · Yahoo Finance · Aug 23
Excelerate Energy Trades 8% Below $42.75 Fair Value as Shares Rally to $39.35
Updated
Updated · Yahoo Finance · Aug 23

Excelerate Energy Trades 8% Below $42.75 Fair Value as Shares Rally to $39.35

1 articles · Updated · Yahoo Finance · Aug 23

Summary

  • $39.35 was Excelerate Energy's Aug. 21 close, leaving the stock about 8% below a widely followed $42.75 fair-value estimate despite a recent rally.
  • 7.43% gains over seven days and a 38.85% year-to-date rise have drawn fresh attention, while 62.13% one-year and 117.98% three-year total shareholder returns point to sustained momentum.
  • More than 90% of adjusted EBITDA is tied to long-term take-or-pay contracts, giving earnings visibility and supporting the bullish case on growth, margins and LNG demand.
  • Valuation risk remains: the stock trades at 26 times earnings versus roughly 13 times for the U.S. oil and gas industry, and faster decarbonization or underused projects could weaken the LNG thesis.

Insights

With a valuation double the industry average, is Excelerate Energy's contract-heavy LNG model a bulletproof shield or a hidden trap?
Can delayed mega-projects in the Middle East and a new FSRU conversion actually sustain this energy stock's massive three-year rally?