* Note: Prices are in Million (M) USD.
Description:
OPAL Fuels Inc. is a leading innovator in the renewable natural gas (RNG) sector, specializing in the transformation of organic waste into sustainable energy solutions that align with a low-carbon future. The company boasts a robust portfolio of RNG production facilities and strategic partnerships, enhancing its operational efficiencies and market reach. With a strong commitment to advanced technologies and innovative practices, OPAL Fuels is uniquely positioned to capitalize on the growing demand for eco-friendly energy alternatives, underscoring its potential for significant value creation in the evolving energy landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $91 M
Debt : $432 M
EBITDA : $32 M
Net Debt (Debt - Cash): $340 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Utilities
Industry: Utilities - regulated gas
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 1.72
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-62 M
Average Revenue: $221 M
Revenue Converted To Free Cash Flow (%): -27.9%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $349 M
Revenue 5 Years Ago (2020-12-31): $118 M
Total Growth over 5 Years: 196.5%
5-Year Revenue CAGR (Historical): 24.3%
Forward 5-Year CAGR (Tapered): 17.0%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $29 M
Share Count 5 Years Ago (2021-12-31): $25 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.17
Trailing 12-Month Earnings Per Share (EPS): $1.02
Average Earnings Per Share (EPS): $1.10
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 3 valid ROE years (max 20).Average ROE: 455.6%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $1.88
52-Week Low: $1.65
Threshold Price (15% Above 52-Week Low): $1.90
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $351 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 24 points to above OPAL Fuels Inc (OPAL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (14.65)
× EPS ($1.10) = $16.04.
Last 3 Years Avg PE
14.65, Fair Value PE
15, Industry Based PE
15, Growth Based PE
17, ROE Based PE
50, Risk-Free Anchored PE (25% MoS)
16.03. Based on these 6 values, average assigned is
21.28. Value-Trades has assined P/E value
14.65. An average (Current Year EPS + Next Year EPS) earning per share is
$1.095.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $23.30 (PE 21.28 × EPS $1.10)
Fair value using simple average PE × EPS: $16.04 (PE 14.65 × EPS $1.10)
Lesser of these two: $16.04
So the Final Fair Value is: $16.04
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.10
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 6.4 | $7.01 |
| 3 Yrs Avg-PE | 14.65 | $16.04 |
| Value-Trades Assigned | 14.65 | $16.04 |
Note: Only 3 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
