• If you are trying to figure out whether Centrus Energy's share price makes sense right now, the key question is how that price compares with the underlying value of the business.
• The stock recently closed at US$307.57, after a 4.8% decline over the last 7 days, a 34.5% gain over 30 days, a 12.9% gain year to date, a 317.8% gain over 1 year and a very large gain across 3 and 5 year periods.
• Recent news coverage has focused on Centrus Energy's role in the nuclear fuel supply chain and ongoing interest in companies linked to nuclear power and uranium. This context helps explain why the stock has attracted attention during periods of sharp price moves and changing views on sector risk.
• Even with this history of returns, our valuation model currently gives Centrus Energy a value score of 0 out of 6. Next we will look at how different valuation approaches treat the stock, followed by a way to think about value that goes beyond any single model.

Centrus Energy scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Centrus Energy Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes the cash Centrus Energy is expected to generate in the future, then discounts those cash flows back to today to estimate what the business might be worth right now.

For Centrus Energy, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is about US$151.2 million. Analysts have provided explicit forecasts for several years, with 2026 FCF of US$99.5 million and 2030 FCF of US$176 million, and Simply Wall St extrapolates the remaining years out to 2035 using its own growth assumptions.

When all those projected cash flows are discounted back and combined, the model arrives at an estimated intrinsic value of US$258.64 per share. Compared with the recent share price of US$307.57, the DCF output implies the stock is 18.9% overvalued according to this methodology.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Centrus Energy may be overvalued by 18.9%. Discover 884 undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Centrus Energy Price vs Earnings

For a profitable business like Centrus Energy, the P/E ratio is a straightforward way to connect what you pay for each share with the earnings that support that price. It lets you compare the market’s expectations for this company with others using a single, familiar yardstick.

What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher uncertainty usually lines up with a lower one.

Centrus Energy currently trades on a P/E of 49.27x. That sits well above the Oil and Gas industry average of 13.70x and the peer average of 16.80x. Simply Wall St’s Fair Ratio for Centrus Energy is 12.12x, which is its proprietary view of what the P/E might look like after accounting for factors such as earnings growth, profit margins, industry, market cap and company specific risks. Because it is tailored to the company rather than broad group averages, the Fair Ratio can provide a more nuanced anchor than simple peer or industry comparisons. Setting 49.27x against the 12.12x Fair Ratio suggests the shares are trading at a much richer multiple than this framework would indicate.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Centrus Energy Narrative

Earlier we mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you turn your view of Centrus Energy into a clear story that links its business context to a set of revenue, earnings and margin forecasts, then to a Fair Value you can compare with the current price. This is all provided within an accessible tool on the Community page that updates when new news or earnings arrive and can reflect very different views. For example, one investor may focus on risks around execution, funding and dilution, while another may focus on long term demand, contract backlog and profitability assumptions. Each Narrative gives its own fair value that you can weigh against the latest share price to decide whether you see Centrus as closer to the lower or higher end of the current fair value range around US$279.73.

Do you think there's more to the story for Centrus Energy? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.