Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells microinverter systems for the solar photovoltaic industry in the United States and internationally. The company was founded in 2006 and is headquartered in Petaluma, California.
ENPH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ENPH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Enphase Energy Inc ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 37% on a DCF basis. The most interesting components of our discounted cash flow analysis for Enphase Energy Inc ended up being:
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than merely 11.05% of the free cash flow producing stocks we're observing.
ENPH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.26% of tickers in our DCF set.
As a business, Enphase Energy Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KLAC, PLXS, OTEX, BABA, and CACI can be thought of as valuation peers to ENPH, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
The solar industry might not be a big market as it accounts for merely 2% of the total electricity generated in the U.S. Worldwide, it amounts to a $53 billion industry. But it's growing like crazy as it is projected to be worth $223.3 billion by 2026. Tesla Inc (NASDAQ: TSLA ) attracts a lot of attention even in this industry with its skyrocketing stock price. But Tesla still does not have a history of consistent profits, so many argue that the company is inflated in comparison to its book value, as well as top and bottom lines. As for the EV race, Tesla is well ahead. But, in renewables, Enphase Energy Inc (NASDAQ: ENPH ), Brookfield Renewable Partners LP (NYSE: BEP ) as well as the recently separated SunPower Corporation (NASDAQ: SPWR ) and Maxeon Solar Technologies (NASDAQ: MAXNV ) ...
Enphase Energy ([[ENPH]] +0.3%) says its microinverters were selected by Australian solar energy provider Solargain as the premium inverter solution for its turnkey retail solar offerings in the country; financial terms are not provided.Solargain recently was tapped by IKEA as its Australian partner to support in-store and online solar offerings.Abundant...