Assessing Teekay (TK) Valuation After Strong Recent Shareholder Returns

Teekay (TK) has been drawing attention after recent share price moves, with the stock showing strong returns over the past year and the past 3 months. Investors are weighing how this performance lines up with fundamentals.

See our latest analysis for Teekay.

With the share price at $12.95 and a 30 day share price return of 29.11% building on a 33.37% 90 day gain, the recent move continues a longer run in which the 1 year total shareholder return of 125.21% sits alongside a 5 year total shareholder return of 385.40%.

If Teekay’s run has you looking beyond shipping, this could be a good moment to browse 19 top founder-led companies to see what else is emerging on your radar.

With Teekay reporting revenue of $992.518m and net income of $78.904m, alongside a value score of 4 and an estimated 71% intrinsic discount, you have to ask yourself whether there is still a buying opportunity here or whether the market is already pricing in future growth.

Price-to-Earnings of 14x: Is it justified?

On a P/E of 14x, Teekay screens as slightly cheaper than peers, while the last close at $12.95 also sits well below the SWS DCF fair value estimate of $45.06.

The P/E multiple compares the company’s share price to its earnings, so at 14x investors are currently paying 14 times Teekay’s recent earnings per share. For an oil and gas shipping business with positive net income of $78.904m, that multiple helps frame what the market is willing to pay for each dollar of profit in a sector where earnings can be sensitive to freight rates and utilisation.

Relative to a peer average P/E of 15.7x and a US Oil and Gas industry average of 14.1x, Teekay’s 14x sits a touch lower than both. This suggests the market is applying a small discount to its earnings compared to similar companies. In addition, the SWS DCF model’s fair value of $45.06, against the current $12.95 price, points to a large gap between the model’s cash flow based estimate and where the market is trading today.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 14x (UNDERVALUED)

However, you still need to think about sector risks, such as freight rate volatility and utilisation, as well as Teekay’s reliance on a relatively concentrated fleet and customer base.

Find out about the key risks to this Teekay narrative.

Another angle from our DCF model

While the 14x P/E suggests Teekay is slightly cheaper than peers, our DCF model presents a different view, with a fair value estimate of $45.06 compared with the current $12.95 price. That gap points to a different story, so which signal do you consider more useful?

Look into how the SWS DCF model arrives at its fair value.

TK Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Teekay for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 46 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Next Steps

Does this mix of potential upside and clear risk flags leave you excited or cautious? Take a closer look at the details now and shape your own view with 1 key reward and 2 important warning signs.

Looking for more investment ideas?

If Teekay has sharpened your focus, do not stop here. Use the Simply Wall St screener to spot other opportunities that fit your own approach.

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.

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