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 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 510%. The most interesting components of our discounted cash flow analysis for Enphase Energy Inc ended up being:
The compound growth rate in the free cash flow of Enphase Energy Inc over the past 5.55 years is 0.85%; that's higher than 86.31% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than merely 8.71% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ENPH, try GILT, COUP, LYTS, SQ, and AVNW.