Is Scorpio Tankers (STNG) Still Attractive After A 107% One Year Share Price Surge

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If you are wondering whether Scorpio Tankers at around US$80 per share is still good value, the key question is how its current price stacks up against underlying worth. The stock has slipped 2.3% over the past week, but is up 5.6% over 30 days, 61.4% year to date and 106.7% over the last year. These moves can influence how you think about both upside potential and risk. Recent coverage has focused on Scorpio Tankers as an active player in the energy shipping sector, with attention on how its trading performance and capital allocation are affecting investor sentiment. News has also highlighted how tanker companies are responding to changing trade flows and freight conditions, which helps frame these recent share price moves. Scorpio Tankers currently has a valuation score of 6/6. The sections that follow will walk through the standard valuation checks first, followed by a more complete way to think about what this stock might be worth.

Scorpio Tankers delivered 106.7% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry.

Approach 1: Scorpio Tankers Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimated future cash flows and discounts them back to today’s value using a required rate of return. The goal is to convert a stream of future dollars into a single estimate of what Scorpio Tankers might be worth right now.

For Scorpio Tankers, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $539.3 million. Analysts provide explicit forecasts for the next few years, and Simply Wall St extrapolates beyond that, with ten year free cash flow projections ranging from $1,286 million in 2026 to around $298.5 million in 2035, all expressed in today’s dollars after discounting.

Pulling those cash flows together produces an estimated intrinsic value of $116.54 per share. Compared with the current share price of around $80, the model implies the stock is about 31.2% undervalued according to these assumptions and inputs.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Scorpio Tankers is undervalued by 31.2%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.STNG Discounted Cash Flow as at May 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Scorpio Tankers.

Approach 2: Scorpio Tankers Price vs Earnings

For a profitable company, the P/E ratio is a straightforward way to relate what you pay for the stock to the earnings it generates. It gives you a quick sense of how many dollars investors are currently willing to pay for each dollar of earnings.

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What counts as a "normal" P/E ratio usually reflects what investors expect for future growth and how much risk they see. Higher expected earnings growth or lower perceived risk often lines up with a higher P/E, while slower growth or higher risk tends to go with a lower P/E.

Scorpio Tankers trades on a P/E of 7.32x. This sits well below both the Oil and Gas industry average P/E of about 14.61x and the peer average of 14.62x. Simply Wall St also calculates a proprietary Fair Ratio of 10.98x. This is the P/E it would expect for Scorpio Tankers after accounting for factors like earnings growth, profit margins, industry, market cap and risk profile.

Because the Fair Ratio is tailored to the company, it gives a more specific benchmark than a broad industry or peer comparison. Here, the current 7.32x P/E is below the 10.98x Fair Ratio, which points to the stock trading at a discount to this fair value yardstick.

Result: UNDERVALUEDNYSE:STNG P/E Ratio as at May 2026

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Upgrade Your Decision Making: Choose your Scorpio Tankers Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple way for you to attach a clear story about Scorpio Tankers to concrete numbers like your own fair value, revenue, earnings and margin assumptions. You can then see how that story translates into a forecast and a fair value that you can compare with the current share price around US$80, to decide whether the stock looks attractive, fully priced or expensive for you. All of this can be done within Simply Wall St's Community page, where Narratives are updated automatically when new earnings, news or analyst targets arrive. For example, one investor might build a Narrative around higher cash generation, margins near 41.7% and a fair value close to US$90. Another might focus on declining revenue, margins near 21.7% and a fair value closer to US$49. Both viewpoints can sit side by side to help you see exactly which assumptions you agree with before you act.

For Scorpio Tankers, here are previews of two leading Scorpio Tankers Narratives:

🐂 Scorpio Tankers Bull Case

Fair value in this bullish narrative: US$86.67

Implied discount to that fair value at the last close of US$80.21: about 7.5% below the narrative fair value.

Revenue growth assumption: 93.01% decline in the long run modelled assumption.

Focuses on ton mile demand, refinery shifts and a younger fleet supporting utilization, margins and cash generation. Emphasizes a profit margin assumption of about 41.7% and earnings of US$380.3 million by 2029 to support the analysts' consensus price target of US$86.67. Highlights key risks such as the energy transition, potential future overcapacity, geopolitical disruptions and higher capex needs as the fleet ages.

🐻 Scorpio Tankers Bear Case

Fair value in this bearish narrative: US$70.00

Implied premium to that fair value at the last close of US$80.21: about 14.6% above the narrative fair value.

Revenue growth assumption: 111.36% decline in the long run modelled assumption.

Frames a more cautious path where revenue is assumed to fall 2.6% a year and profit margins to compress from 39.2% to 21.7% over three years. Builds to a bearish price target of US$49.00 that relies on lower earnings of US$183.7 million by 2028 and a higher future P/E of 13.7x. Flags energy transition, regulatory pressure, possible overcapacity and geopolitical shocks as key reasons why earnings and cash flow could be at risk.

If you are weighing these viewpoints against the current price around US$80, it may help to decide which set of assumptions on revenue, margins and risks feels closer to how you see the future for this stock.

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Scorpio Tankers on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Do you think there's more to the story for Scorpio Tankers? Head over to our Community to see what others are saying!NYSE:STNG 1-Year Stock Price Chart

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.

Companies discussed in this article include STNG.

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