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LGI Limited (LGI) Fair Value & Analysis

Utilities · AU · Market cap A$274M

LL LGI Limited LGI · AU
PriceA$2.07
Fair ValueA$1.13
Upside-45.4%
Quality50/100
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Expensive Growth
Solidly profitable · 17.8% net margin
Low debt · negative free cash flow
0.98% dividend yield
Mixed vs. peers (7/13)
Moderate moat 61/100
Evidence: High Range A$0.8500 – A$1.41 Share as image

Fair value as of: Jul 16, 2026

From 16 valuation models · updated 25 days ago

Share price −22.8% over the past month.

A solid business, but screening 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$1.41). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (4 years)

A$4.49 A$1.65 Fair Value A$1.13 Oct 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

46‑month range A$1.65 – A$4.49 · fair‑value band A$0.8500 – A$1.41 · the A$2.07 price screens above the A$1.13 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

LGI Limited (LGI) currently trades at A$2.07, while our model-based Fair Value estimate is A$1.13, implying the stock looks roughly 45.4% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, LGI Limited generated revenue of A$40.2M at a net margin of 17.8%. Revenue grew 20.2% year over year. It earns a return on equity of 8.5%. Net debt stands at A$30.6M. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$0.8500 (bear case) to A$1.41 (bull case); at A$2.07, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 61% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -30% fair-value upside, at -45%, LGI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income A$0.4600 A$0.5000 A$0.6000 76
ROIC Compounder A$0.3500 A$0.4200 A$0.4700 72
Gordon GGM A$0.1500 A$0.2500 A$0.3200 70
All 16 models by family
Earnings-Based
Graham-Dodd A$0.4300 A$2.97 A$4.17 54
Lynch FV A$1.38 A$1.97 A$2.56 50
PEG = 1.0 A$1.38 A$1.97 A$2.56 46
EPV A$0.3500 A$0.4200 A$0.4700 59
Dividend Discount
Gordon GGM A$0.1500 A$0.2500 A$0.3200 70
DDM Multi-Stage A$0.1500 A$0.2400 A$0.2700 61
Multiples
P/E Multiple A$0.8500 A$1.13 A$1.41 63
P/S Multiple A$0.6700 A$0.8900 A$1.11 58
P/B Multiple A$0.7500 A$1.01 A$1.26 55
EV/EBIT A$0.9300 A$1.33 A$1.72 53
EV/EBITDA A$1.01 A$1.43 A$1.85 54
EV/Revenue A$0.3800 A$0.6400 A$0.9100 43
Asset-Based
NCAV (Graham) A$0.2800 A$0.3700 A$0.5600 50
Economic Profit
Residual Income A$0.4600 A$0.5000 A$0.6000 76
ROIC Compounder A$0.3500 A$0.4200 A$0.4700 72
Growth Earnings
Growth-Adj P/E A$1.76 A$2.51 A$3.26 68

Widest divergence: Growth Earnings (A$2.51) versus Dividend Discount (A$0.2400). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) A$40.2M
Revenue growth (YoY) +20.2%
Net margin 17.8%
Return on equity 8.5%
Free cash flow −A$6.2M FY2025
P/E ratio 38.8
More key figures
Operating margin 26.1%
EPS (TTM) A$0.0800
Dividend yield 0.8%
EPS growth (YoY) +22.2%
Net debt A$30.6M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 51 · Market factors (momentum, volatility) 21

Profitability 45
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 11
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 5
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

LGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill in Australia. It operates through Renewable Energy, Carbon Abatement, and Infrastructure Construction and Management segments. The company offers greenhouse gas abatement solutions.

Full company description

LGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill in Australia. It operates through Renewable Energy, Carbon Abatement, and Infrastructure Construction and Management segments. The company offers greenhouse gas abatement solutions. It also engages in the design, installation, operation, and maintenance of biogas extraction infrastructure and flaring systems for landfill owners; acquisition, creation, and sale of Australian carbon credit units; and installation of power generation systems. In addition, the company sells renewable electricity and large-scale generation certificates. LGI Limited was incorporated in 2009 and is based in Eagle Farm, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LGI Limited reported revenue of A$36.7M in FY2025 versus A$6.5M in FY2021, a compound +53.9%/yr. Reported net income was A$6.5M in FY2025, compounding +38.7%/yr from FY2021.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
A$36.7M
Latest YoY
+10.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+32.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+54.5%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+32.3%
Revenue +53.9%/yr
FY21 A$6.5M
FY22 A$15.8M
FY23 A$32.3M
FY24 A$33.2M
FY25 A$36.7M
Net income +38.7%/yr
FY21 A$1.7M
FY22 A$4.8M
FY23 A$6.4M
FY24 A$6.7M
FY25 A$6.5M

LGI screens 45% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "LGI Limited Fair Value". https://www.fairvalue-calculator.com/stock/LGI

Peer Group

Utilities - Renewable · 220 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Above median
Fair Value upside −45% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 26% · Above median
Revenue growth 20% · Above median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.49× · Lower than median

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 33.1× · Pricier than median
P/B 3.35× · Pricier than 75% of peers
P/S (TTM) 4.82× · Pricier than median
EV/EBITDA 11.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 12
FUTURE 100 · sector 0
PAST 34 · sector 12
HEALTH 75 · sector 68
DIVIDEND 20 · sector 48

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.99 ¥25.13 -10%
Ørsted A/S ORSTED kr 149.70 kr 31.40 -79%
Huaneng Lancang River Hydropower Inc 600025 ¥9.81 ¥5.57 -43%
Adani Green Energy Limited ADANIGREEN ₹1,537 ₹170.50 -89%
AXIA Energia SA AXIAP $10.74 $9.65 -10%
VERBUND AG OEWA €58.65 €66.19 +13%
BEP BEP $32.33 $73.35 +127%
BEPUN BEPUN C$44.56 C$10.15 -77%
Fortum Oyj FORTUM €19.89 €13.90 -30%
China Longyuan Power Group 001289 ¥16.21 ¥8.23 -49%

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Frequently asked questions

Is LGI Limited (LGI) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$1.13 versus a price of A$2.07, about −45% (overvalued).
What is the fair value of LGI?
Our model-based fair value for LGI Limited is A$1.13 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$2.07.
What is the quality score of LGI?
LGI Limited has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LGI Limited (LGI)?
LGI Limited reported trailing-twelve-month revenue of about A$40.2M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of LGI?
The net profit margin of LGI Limited is about 17.8%, meaning it keeps roughly 17.8% of revenue as net income. Based on the latest reported figures.
Does LGI Limited pay a dividend?
LGI Limited currently shows a dividend yield of about 0.82% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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