SolarEdge Technologies manufactures and supplies DC optimized inverter systems for solar PV installations. The company was founded in 2006 and is based in Hod Hasharon, Israel.
SEDG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SEDG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Solaredge Technologies Inc ranked in the 99th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. The most interesting components of our discounted cash flow analysis for Solaredge Technologies Inc ended up being:
The compound growth rate in the free cash flow of Solaredge Technologies Inc over the past 4.72 years is 3.09%; that's better than 95.69% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 4.35% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SEDG'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 56.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Solaredge Technologies Inc? See MOMO, PRSP, LITE, OKTA, and DCMYY.
SolarEdge Technologies ([[SEDG]] -6.8%) sinks after Goldman Sachs downgrades shares to Sell from Neutral with a $126 price target, saying the company's U.S. residential market share has peaked and is now on the decline, while gross margins are expected to remain challenged due to segment and geographical mix shift.With the...
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