Is Cheniere Energy Partners LP (CQP) overvalued?
On Equity Rank's model estimate, CQP trades close to its fair value (6% above it). Cheniere Energy Partners LP (CQP) last closed at $57.36; the multi-method model fair value is $54.27.
| Price | Model fair value | Price vs model |
|---|---|---|
| $57.36 | $54.27 | 6% above |
What the answer rests on
- 5 of 11 valuation methods put CQP's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, CQP's free cash flow would need to grow about 0.8% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -11.4% a year.
- CQP trades at 9.9 times its last year's earnings, against a median of 14.9 for 110 profitable Energy companies.
- Over the past year the price sat below the model fair value on 8% of trading days. The gap ranged from 7% below to 21% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CQP's fair value · What prices assume · Other companies