SolarEdge Technologies (SEDG) Appears Undervalued According to DCF Model

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Apr 10, 2025
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Quick Summary:

  • SolarEdge Technologies (SEDG, Financial) may be undervalued by approximately 29% according to a discounted cash flow (DCF) analysis.
  • Consensus projections from analysts indicate a potential upside of 71.18% from the current share price.
  • The GF Value suggests a significant upside of 384.02%, highlighting potential growth opportunities.

Understanding SolarEdge's Potential Valuation

SolarEdge Technologies (SEDG) may present an intriguing investment opportunity as a detailed discounted cash flow (DCF) analysis reveals it could be undervalued. The equity value, as derived from the model, approximates $1.1 billion. This suggests a possible 29% discount relative to its present stock price of $13.4. While this signals potential, investors are advised to explore multiple assumptions to derive more accurate valuation estimates.

Wall Street Analysts' Price Forecast

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A closer look at analyst estimates provides a broader perspective on SolarEdge Technologies Inc (SEDG, Financial). Out of 27 analysts offering one-year price targets, the average stands at $19.40. Prices vary significantly, with projections reaching as high as $100.00 and as low as $3.90. This average target represents a potential upside of 71.18% from the current trading price of $11.33. Further insights can be explored on the SolarEdge Technologies Inc (SEDG) Forecast page.

Brokerage Recommendations

SolarEdge Technologies Inc (SEDG, Financial) currently holds an average brokerage recommendation rating of 3.3, reflecting a "Hold" consensus. This rating is based on the input of 33 brokerage firms, with a scale ranging from 1 to 5, where 1 is Strong Buy and 5 indicates Sell. This balanced recommendation suggests a cautious approach among analysts.

Exploring GuruFocus' GF Value

According to GuruFocus estimates, the GF Value for SolarEdge Technologies Inc (SEDG, Financial) in one year is projected at $54.84, indicating a remarkable upside potential of 384.02% from its current price of $11.3301. The GF Value is a reflection of the fair market value at which the stock should ideally trade. It is calculated by considering historical trading multiples, past business growth, and future performance projections. For more comprehensive details, visit the SolarEdge Technologies Inc (SEDG) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.