Is Golar LNG Ltd. overvalued or undervalued?

As of 14 August 2025, Golar LNG Ltd. has moved from an attractive to a risky valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 25, which is higher than the peer average of approximately 22.93 for similar companies in the transport services industry. Additionally, Golar LNG's EV to EBITDA ratio stands at 57.26, significantly above the industry average, suggesting that the company may be priced too high relative to its earnings potential.
In comparison to its peers, Frontline Plc has a more favorable P/E ratio of 21.44 and an EV to EBITDA of 10.11, indicating a better valuation. Other peers like Kirby Corp. and Matson, Inc. also show lower valuation ratios, with P/E ratios of 15.18 and 6.73, respectively. Despite Golar LNG's strong one-year return of 22.76%, which outperformed the S&P 500's 17.14%, its longer-term performance over three and five years has lagged behind the benchmark, suggesting that the current valuation may not be justified given the company's risk profile.