As of June 10, 2025, Golar LNG Partners LP's estimated intrinsic value ranges from $0.85 to $69.58 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $39.47 | +1011.7% |
| Discounted Cash Flow (5Y) | $32.76 | +822.8% |
| Dividend Discount Model (Multi-Stage) | $7.14 | +101.1% |
| Dividend Discount Model (Stable) | $0.85 | -76.0% |
| Earnings Power Value | $69.58 | +1860.0% |
Is Golar LNG Partners LP (GMLP) undervalued or overvalued?
With the current market price at $3.55, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Golar LNG Partners LP's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.99 | 2.17 |
| Cost of equity | 7.4% | 15.6% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 15.5% | 32.1% |
| Debt/Equity ratio | 5.06 | 5.06 |
| After-tax WACC | 4.0% | 5.1% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $33 | $3,466M | 82.1% |
| 10-Year Growth | $39 | $3,931M | 69.1% |
| 5-Year EBITDA | $2 | $1,305M | 52.5% |
| 10-Year EBITDA | $10 | $1,867M | 34.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $272M |
| Discount Rate (WACC) | 5.1% - 4.0% |
| Enterprise Value | $5,308M - $6,727M |
| Net Debt | $1,195M |
| Equity Value | $4,112M - $5,532M |
| Outstanding Shares | 69M |
| Fair Value | $59 - $80 |
| Selected Fair Value | $69.58 |
| Metric | Value |
|---|---|
| Market Capitalization | $246M |
| Enterprise Value | $1441M |
| Trailing P/E | 12.82 |
| Forward P/E | 12.56 |
| Trailing EV/EBITDA | 5.50 |
| Current Dividend Yield | 1827.24% |
| Dividend Growth Rate (5Y) | -26.58% |
| Debt-to-Equity Ratio | 5.06 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $11.84 |
| Discounted Cash Flow (5Y) | 25% | $8.19 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.43 |
| Dividend Discount Model (Stable) | 15% | $0.13 |
| Earnings Power Value | 10% | $6.96 |
| Weighted Average | 100% | $28.54 |
Based on our comprehensive valuation analysis, Golar LNG Partners LP's weighted average intrinsic value is $28.54, which is approximately 704.0% above the current market price of $3.55.
Key investment considerations:
Given these factors, we believe Golar LNG Partners LP is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.