FLEX LNG (FLNG) Could Be 61% Below Fair Value On Its Charter Backlog Story

FLEX LNG (NYSE:FLNG) has drawn fresh attention after recently closing at US$32.22, prompting investors to reassess how the liquefied natural gas shipper's valuation lines up with its fundamentals and longer term share performance.

Recent trading has been choppy but positive for FLEX LNG, with a small 1-day share price decline set against a 7-day share price return of 3.47% and a year-to-date share price return of 30.60%.

Scan how FLEX LNG's recent run compares with peers and find other energy carriers showing similar momentum with the curated 33 high quality undervalued stocks .

The stock has already delivered a strong run, yet FLEX LNG still trades at a level some models flag as materially below intrinsic value. The key question for investors is whether the current balance of upside potential and shipping risk still rewards new buyers.

Most Popular Narrative: 24% Overvalued

FLEX LNG closed at $32.22, while the most followed valuation narrative anchors fair value at $25.92. The current quote sits materially above that modeled level and places more weight on investor confidence than on the underlying assumptions.

The company's multi-year contract backlog (56 years minimum, up to 85 years with options) and long-term charters secure steady revenue and earnings despite short-term market softness. This positions FLEX LNG to benefit as global LNG trade volumes are projected to rise due to new export capacity coming online, particularly from the US, Qatar, and Africa, which may boost future cash flow visibility and net margin stability.

See why 23 investors see FLEX LNG as 24% overvalued .

Result: Fair Value of $25.92 (OVERVALUED)

Still, the narrative can crack if the wave of roughly 300 new LNG vessels weakens charter rates, or if high shareholder payouts limit FLEX LNG's ability to refresh its fleet.

Find out about the key risks to this FLEX LNG narrative .

Another View on FLEX LNG's Valuation

While analyst narratives peg FLEX LNG as overvalued against a fair value of $25.92, the SWS DCF model points in the opposite direction. On this framework, FLNG at $32.22 trades around 61% below an estimated future cash flow value of $82.83, which presents the share price as heavily discounted instead.

Two models, two very different answers, and both use reasonable assumptions. The question becomes which one an investor might rely on more when real money is on the line.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out FLEX LNG for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 33 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.