With a one year PEG ratio of 1,009.56, Solaredge Technologies Inc is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 96.37% of US stocks.
Price to trailing twelve month operating cash flow for SEDG is currently 53, higher than 92.38% of US stocks with positive operating cash flow.
With a year-over-year growth in debt of 1,128.77%, Solaredge Technologies Inc's debt growth rate surpasses 98.23% of about US stocks.
Stocks that are quantitatively similar to SEDG, based on their financial statements, market capitalization, and price volatility, are LSCC, ANET, QLYS, MPWR, and AMPH.
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 93th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3395%. As for the metrics that stood out in our discounted cash flow analysis of Solaredge Technologies Inc, consider:
In the past 5.21 years, Solaredge Technologies Inc has a compound free cash flow growth rate of 2.34%; that's better than 94.74% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately merely 14.51% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Solaredge Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -8.22. This coverage rate is greater than that of just 9.67% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 EXFO, IMOS, SCSC, KYOCY, and LOV.
Investment Thesis Despite the large increases in valuation among renewable energy sector generally and some of the solar energy companies specifically, we continue to believe that the investments remain attractive. Renewable energy tailwinds are massive, especially for solar. SEDG is trading near the PEG adjusted multiples of the SP500 based...
John D. Edwards CFA on Seeking Alpha | September 23, 2020
B.Riley initiated SolarEdge Technologies ([[SEDG]] +5.1%) with a Buy rating, PT $254 indicating a 31.5% upside from current levels.YTD, the stock has gained 95%; quick look at its 6 months performance vs. peers and broader indexAnalyst Christopher Souther sees SolarEdge as the best positioned company to "address multiple end markets...