3 models fit Scorpio Tankers Inc. Common Shares and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver76
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionScorpio Tankers Inc. Common Shares (STNG)
Fair value (3 models)
$103
ACCE price target
$87.00
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:05 CEST; previously $141 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:05 CEST.
Price used: $85.92 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E 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
16.3% below
+19.5% to fair value
ACCE score
89
out of 100
Analysts
80% buy
10 covering
P/E
5.3x
forward 12.8x
1-year return
+42.4%
Dividend yield
2.18%
Scorpio Tankers Inc. Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Scorpio Tankers operates a fleet of product and crude tankers, carrying refined fuels and crude oil on spot and time-charter contracts across the world's main trade lanes. Its edge is scale and modern tonnage in the product tanker segment, and a 59.7% operating margin on 77.5% revenue growth shows how much of the recent freight upcycle has reached the bottom line. The main near-term driver is the charter market itself: tanker earnings respond quickly to sanctions-driven rerouting and tight vessel supply, and the company's largely spot-exposed fleet captures that move rather than waiting for contract renewals. At a trailing P/E of 5.2 against a forward P/E of 15.6, the market is pricing in a normalization of these earnings, so the question for us is whether the current rate environment persists long enough to make the trailing numbers the better guide. With a 24.6% ROE and a $4.1B market cap, the name sits outside any major index, which may leave it under-owned relative to its earnings power and worth a closer look at the balance sheet and fleet age.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Earnings growth flattered by cycle
Earnings rose 382.8% YoY while five-year revenue CAGR is only 0.5%, so the jump reflects a tanker rate upswing rather than durable compounding. Net margin of 67.2% is unlikely to hold through a downturn.
moderate
Score slipped over 90 days
The ACCE score fell from 95 to 89 over 90 days, with the margin component at 77 the weakest of the four pillars.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 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 $417M, and the stock yields 10.2% on that cash generation.
Net margin of 67.2% shows the company keeps most of each dollar of revenue as profit, while revenue grew 77.5% year over year.
Eight of ten analysts rate the shares Buy or Strong Buy, and their mean target sits 23.0% above the current price.
Why it could disappoint
Revenue grew 77.5% this year but only 0.5% per year on average over five years, so the current surge may not last.
Return on invested capital of 7.4% is far below the 24.6% return on equity, showing modest returns on the total capital employed.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where STNG's valuation models land
Price
$85.92
Model fair value
$103
Model range
$57.48 to $150
Fair value $103
Price $85.92
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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