3 models fit Enerflex Ltd Common Shares and they disagree: 1 of 3 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionEnerflex Ltd Common Shares (EFXT)
Fair value (3 models)
$14.78
ACCE price target
$25.00
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 14:06 CEST; previously $15.21 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 14:06 CEST.
Price used: $22.75 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
53.9% above
-35.0% to fair value
ACCE score
48
out of 100
Analysts
100% buy
10 covering
P/E
51.7x
forward 11.9x
1-year return
+88.6%
Dividend yield
0.53%
Enerflex Ltd Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Enerflex builds and services natural gas compression packages, processing equipment and power generation units for upstream and midstream operators, with a large aftermarket service base that generates recurring revenue. The company's case rests on that installed fleet and the steady demand for gas compression as producers and midstream operators need to move and process more gas. Revenue fell 5.4% over the latest period, and the trailing P/E of 56.6 reflects depressed earnings, while the forward P/E of 12.4 implies the market expects a sharp recovery in profitability. Operating margin of 10.8% and ROE of 4.6% are thin, so the thesis depends on margin repair and order conversion rather than on any balance-sheet strength. With a $3.0B market cap and a score of 49/100, it is a name to examine closely for whether the earnings rebound is credible before deciding anything further.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapsing year on year
Earnings are down 49.5% YoY and revenue fell 5.4%, even as net margin sits at a thin 2.1%. The P/E of 54.9 against a forward P/E of 12.4 shows the market is pricing a sharp earnings recovery that has not yet appeared.
moderate
Score down sharply in 90 days
The ACCE score fell 21 points, from 71 to 50, with the Quality sub-score at 47 and Growth at 7. The deterioration is recent and concentrated in the growth and quality pillars.
moderate
Price well above model fair value
The stock trades 53.9% above the model fair value of $14.78, and sits 9.0% below the ACCE price target of $25.00. The gap to fair value is large enough that it hinges on the forward earnings recovery materialising.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $234M, a yield of 7.9% at the current price.
Revenue has grown 22.3% a year on average over five years, showing the business has expanded considerably.
Why it could disappoint
Trailing earnings multiple is 54.9x, while the forward multiple of 12.4x sits below the sector median of 16.1x only on hopeful estimates.
Revenue fell 5.4% year over year, and the latest quarterly earnings per share missed expectations by 24.2%.
Net margin is just 2.1% and return on invested capital is 3.0%, so the business earns little on each dollar of sales and capital.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
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Valuation
INVESTOR
Where EFXT's valuation models land
Price
$22.75
Model fair value
$14.78
Model range
$10.31 to $20.13
Fair value $14.78
Price $22.75
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores