Liberty Energy Inc. Class A common stock (LBRT) fair value
Energy · Oil & Gas Equipment & Services · NYSE · United States
$15.59+1.37%
Market cap $2.5BNext earnings 2026-10-21Updated Oct 23, 2026
Our verdict
Trades 19% above our fair value
Price
$15.59
Model fair valueConfidence: good
$13.12
Model range
$8.28 to $19.17
Fair value $13.12
Price $15.59
4 models fit Liberty Energy Inc. Class A common stock and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionLiberty Energy Inc. Class A common stock (LBRT)
Fair value (4 models)
$13.12
ACCE price target
$20.00
Rating
Overvalued
Horizon
12 months
Fair value published on 23 Oct 2026, 12:04 CEST; previously $13.25 since 21 Oct 2026, 11:06 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $15.59 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, 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
18.9% above
-15.9% to fair value
ACCE score
38
out of 100
Analysts
64% buy
14 covering
P/E
20.8x
forward 29.5x
1-year return
-3.9%
Dividend yield
0.00%
Liberty Energy Inc. Class A common stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Liberty Energy provides hydraulic fracturing services to oil and gas operators, running fleets of frac pumps and sand handling equipment in the Permian and other U.S. basins, and has been pushing into power generation for data centers and industrial users. The business is a cyclical services franchise, not a moated one, so the case rests on pricing discipline and fleet utilization rather than any structural advantage. Revenue grew 14.0% recently, but a 1.6% operating margin and 6.1% ROE show how little of that growth reaches the bottom line, and the stock trades at 29.5x forward earnings against 22.4x trailing, which implies the market expects margins to recover. The power business is the catalyst to watch, since it offers a contracted, less cyclical revenue stream that could re-rate the multiple if it scales. With a composite score of 46/100 and no index membership, the name fails most of our screens, and it merits a deeper look only if the margin recovery is already visible in recent quarters.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings sharply down
Earnings fell 39.5% YoY even as revenue grew 14.0%, and net margin is only 2.9%. The P/E of 22.4 is high for that profit base.
high
Score down sharply
The ACCE score fell from 57 to 46 over 90 days, with Growth at 40 and Quality at 43, so the deterioration is broad rather than confined to one factor.
moderate
Heavy short interest
Short interest stands at 14.9%, a level that can amplify volatility if results disappoint. Insider sales of $1.52M outweigh buys of $0.50M over the last ten disclosures.
moderate
Thin free cash flow
Free cash flow is only $14M against a $2.7B market cap, with operating margin at 1.6%, leaving little cushion if the earnings decline continues.
AI research notes
AI-assisted·How I use AIWritten Oct 17, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.0% over the past year, and has averaged 32.9% growth per year over five years.
Earnings per share beat expectations by 28.6% in the latest quarter, reporting 0.09 against 0.07 expected.
Why it could disappoint
The stock trades 18.9% above the model fair value of $13.12, so the four valuation models do not support today's price.
Free cash flow over the last twelve months was only $14M, a 0.5% yield at the current price.
Return on invested capital is 4.1%, and the net margin is just 2.9%, so the business earns thin returns on what it spends.
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Valuation
INVESTOR
Where LBRT's valuation models land
Price
$15.59
Model fair value
$13.12
Model range
$8.28 to $19.17
Fair value $13.12
Price $15.59
The price sits inside the 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
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+Conviction breakdown and growth / value / quality / momentum scores