Is NextDecade (NEXT) Pricing Reflect Its Slump And Liquefied Natural Gas Project Outlook

In general, the P/B investors are comfortable paying tends to be higher when they expect stronger growth and view the business as less risky, and lower when growth is uncertain or risks feel higher. That context matters when you look at benchmarks such as sector or peer averages.

NextDecade currently trades on a P/B of 8.33x. This sits well above the Oil and Gas industry average P/B of 1.35x and also above the peer average of 1.63x. Simply Wall St also uses a proprietary “Fair Ratio” for P/B, which is the multiple it would expect for the company once it factors in earnings growth, profit margins, size, industry and company specific risks.

That Fair Ratio can often give you a more tailored yardstick than a simple peer or industry comparison, because it adjusts for differences in growth, risk profile, profitability and market cap rather than treating all companies as if they are similar.

Result: OVERVALUED

NasdaqCM:NEXT P/B Ratio as at Jan 2026

P/B ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories you create about a company that sit behind your numbers like fair value, and your estimates for future revenue, earnings and margins.

A Narrative connects three pieces: what you think is happening with the business, what that means for its future financials, and what you believe is a fair value for the shares.

On Simply Wall St, within the Community page used by millions of investors, Narratives are an easy tool you can use to set your own assumptions, see the forecast that flows from them, and line that up against today’s share price.

This makes it easier to decide whether you are comfortable buying, holding or selling by comparing your Fair Value to the current Price instead of relying only on headline ratios.

Narratives also update automatically when new information such as company news or earnings is added to the platform, so your story and fair value stay in sync with the latest data.

For example, some investors might build a very optimistic Narrative for NextDecade while others might set far more cautious assumptions and arrive at a much lower fair value, even though they are all looking at the same company.

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

NasdaqCM:NEXT 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 NEXT.

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