Should You Buy Venture Global Stock At This Price?

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Venture Global (VG) stock outperformed the S&P 500 over the past year, yet it trades at 8.9 times earnings, compared with 23.2 for the median S&P 500 company. This valuation could signal a discounted LNG exporter, or it could reflect a fair price for a business that borrowed heavily to build its plants. The low price is a bargain only if profit from the Plaquemines Project holds up and the company’s cash begins to pay down its debt. So, how solid is the profit behind that low multiple?

Venture Global Doubled Sales And Widened Operating Margin

So far, the profit has held up. Venture Global generated $17.0 billion in revenue in the twelve months to June 2026, up 100.7% from a year earlier. Operating margin rose to 38% from 34.4% over the same period, roughly double the 18.7% posted by the median S&P 500 company. Net income, which the P/E is based on, reached $3.6 billion, more than doubling the $1.49 billion reported a year earlier.

The Plaquemines Project generated $9.18 billion in fiscal 2025 out of $13.8 billion for the entire company, after selling almost nothing in fiscal 2024. Most of the company’s output is sold forward. Management said on the August 11, 2026 call that over 91% of its 2026 portfolio was contracted, up from 84% in May.

Gross Margin Has Slipped While Venture Global Borrowed

Debt has continued to rise, and gross margin has fallen in each of the last two years. Venture Global posted a 65.8% gross margin in the twelve months to June 2024 and 54.7% a year later. The figure dropped to 47.8% in the twelve months to June 2026, compared with an average of 56.1% across those three periods. Management said on the August call that second-quarter operating and maintenance costs rose from a year earlier because of commissioning work at Plaquemines and more Venture Global-owned ships in operation. Even so, gross margin in that quarter increased to 58.1% from 45.6% a year earlier.

Venture Global also continues to spend more cash than it brings in. The company recorded negative $6.99 billion in free cash flow over the twelve months to June 2026. Total debt climbed to $42.5 billion at the end of June 2026 from $30.5 billion at the end of June 2025. That debt is not reflected in the P/E, and it exceeds the company’s $31.9 billion market value.

What Is Venture Global Doing About Its Debt?

Venture Global is repaying a portion of its debt and refinancing other obligations. From January through July 2026, the company paid down $1.4 billion of debt, which represents about 3% of what it owed at the end of June. It also refinanced more than $5.3 billion of loans, bonds and preferred equity. Management expects this move to cut annual interest and coupon costs by more than $100 million.

Management has also raised its forecast for the year. The fiscal 2026 guide for consolidated adjusted EBITDA, the company’s own profit measure, increased to $8.9 billion at the midpoint, from $8.35 billion in May. The company expects the Plaquemines Project to reach commercial operation in the fourth quarter, and the CP2 Project to start production in 2027. Plaquemines already ships cargoes while commissioning work continues. The board also raised the quarterly dividend by 122%, to $0.04 per share.

A Venture Global Buyer Is Betting On The Cash

A buyer at this price is betting less that the market has misread a finished business, and more that Venture Global can turn its new plants into cash. Profit has held up so far, but the cash position is weaker. Free cash flow remains negative, and total debt exceeds the company’s market value. Free cash flow and total debt are the figures to watch when Venture Global reports its fiscal Q3 2026 results, expected in November 2026.

Does This Mean You Should Act On VG?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

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