Is Centrus Energy (LEU) Still Attractively Priced After Its Recent Share Price Pullback

Simply Wall St

Thu, February 12, 2026 at 11:16 AM GMT+9 7 min read

In this article:

LEU

-20.69%

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.

If you are asking whether Centrus Energy is still reasonably priced after its run in the spotlight, this article will walk through what the current valuation actually looks like and how it lines up with the business reality.

The stock has recently pulled back, with a 16.4% decline over the last 7 days and a 32.0% decline over the last 30 days, even though the 1 year return sits at 77% and the 3 year return is up 360.9% from earlier levels.

Recent coverage of Centrus has focused on its role in the nuclear fuel supply chain and its positioning within broader discussions about energy security and the transition to lower carbon power sources. This context has kept attention on how sensitive the share price can be to shifts in sentiment about nuclear energy projects and policy support.

Right now, Centrus scores 1 out of 6 on our valuation checks for being undervalued, which you can see in detail in its valuation scorecard, and next we will walk through the standard valuation methods investors tend to use before finishing with a way to look at value that can tie these pieces together.

Centrus Energy scores just 1/6 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 estimates of a company’s future cash flows and discounts them back to today’s dollars, aiming to show what the entire stream of cash might be worth right now.

For Centrus Energy, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month Free Cash Flow is about $41.6 million. Analysts have provided specific Free Cash Flow estimates for the next several years, and Simply Wall St then extends those projections further out, with the ten year path including a projected Free Cash Flow of $176 million in 2030.

Pulling all of those projected cash flows together, discounting them and attributing them to shareholders gives an estimated intrinsic value of $246.78 per share. Compared with the current share price, this implies a 14.8% discount, which points to Centrus trading below this DCF estimate.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Centrus Energy is undervalued by 14.8%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks.

LEU Discounted Cash Flow as at Feb 2026

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

Story Continues  

Approach 2: Centrus Energy Price vs Earnings

For profitable companies, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of current earnings. This makes it a practical cross check against more detailed models like a DCF.

What counts as a “normal” P/E often reflects how investors see the company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower growth or higher risk tends to come with a lower multiple.

Centrus Energy is currently trading on a P/E of 53.12x. That is well above the Oil and Gas industry average of 14.09x and the peer average of 17.68x. Simply Wall St’s Fair Ratio for Centrus is 14.58x, which is its proprietary view of what a reasonable P/E might be after considering factors such as earnings growth, profit margins, the company’s industry, market cap and key risks.

This Fair Ratio can be more informative than a simple industry or peer comparison because it tailors the benchmark to Centrus’ own characteristics rather than assuming all companies in the group deserve similar pricing. With the current P/E of 53.12x sitting well above the Fair Ratio of 14.58x, the stock screens as expensive on this measure.

Result: OVERVALUED

NYSE:LEU P/E Ratio as at Feb 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.

Upgrade Your Decision Making: Choose your Centrus Energy Narrative

Earlier we mentioned that there is an even better way to understand valuation, so on Simply Wall St you can use Narratives, a simple tool on the Centrus Energy Community page where you set your own story about the company, link that story to specific forecasts for revenue, earnings and margins, and see the fair value that drops out of those assumptions.

Think of a Narrative as your written explanation for why your numbers make sense. The platform then connects that story to a full forecast and compares your Fair Value to the current price, which can help you decide whether the stock looks interesting, fully priced, or something you want to avoid.

Narratives update automatically when new information such as news, earnings or funding announcements is added. This means your Centrus view stays current without you having to rebuild your whole model every time the company issues an update.

For Centrus Energy today, one investor on the platform might back a higher fair value like US$390 and a higher future P/E around 73x based on confidence in Department of Energy funding and HALEU expansion. Another might anchor closer to a lower fair value near US$171 and a higher future P/E around 128x because they place more weight on funding, dilution and demand risks. Narratives lets you compare those side by side and decide which story you agree with.

For Centrus Energy, however, we will make it really easy for you with previews of two leading Centrus Energy Narratives:

Each one ties the same business facts to a different set of assumptions about contracts, funding and nuclear demand. Your job is simply to decide which version, or which mix, feels closer to your own expectations.

🐂 Centrus Energy Bull Case

Fair value: US$279.73 per share

Implied undervaluation vs last close: 24.8%

Revenue growth used in this narrative: 11.05% per year

Analysts building this narrative anchor on supportive nuclear policy, HALEU demand and Centrus' backlog as reasons future revenues and margins could stay resilient, even if there are delays or bumps along the way.

They factor in revenue growing by double digits while margins ease back from current levels, plus steady dilution from equity issuance, then discount those future earnings back using a 6.96% rate.

The result is a fair value of about US$280 that sits modestly above the current analyst consensus target, with the view that recent funding and profitability assumptions justify paying up for the stock on an 87.3x future P/E.

🐻 Centrus Energy Bear Case

Fair value: US$171.40 per share

Implied overvaluation vs last close: 22.6%

Revenue growth used in this narrative: 18.0% decline per year

The bearish narrative leans into contract concentration, DOE funding uncertainty and dilution risk, arguing that slower or lumpier enrichment demand could drag on revenues and compress margins over time.

Here, analysts assume revenue contracts each year, margins settle in the mid teens, and earnings in 2028 are well below today, yet the stock would still need to trade on a very high 127.9x future P/E to justify the fair value.

Those inputs lead to a fair value of about US$171, which is well below the last close, reflecting a view that current pricing already bakes in a lot of growth and policy support that may not fully materialise on the timetable some investors expect.

If you want to go beyond these snapshots and build something that actually reflects your own view of contracts, funding and nuclear build out, you can do that directly on the Centrus page by starting from either of these templates or writing your own from scratch. Narratives let you adjust the numbers, spell out your reasoning and then see how your fair value stacks up against the current share price in real time.

When you are done, you will know not just what you think Centrus Energy is worth, but exactly which assumptions need to hold for that view to make sense.

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

NYSE:LEU 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 LEU.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info