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:
We started the process of determining a valid price forecast for Enphase Energy Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Enphase Energy Inc ranked in the 77th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 431% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ENPH, they are:
The compound growth rate in the free cash flow of Enphase Energy Inc over the past 5.8 years is 0.84%; that's higher than 85.15% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 8.49% of the free cash flow producing stocks we're observing.
Enphase Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TACT, CIEN, COUP, NPTN, and TKAT 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.