Solar · NASDAQ
Current Price
$31.19
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Enphase Energy, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.
ROIC (TTM)
3.6%
ROE (TTM)
12.0%
FCF Yield
3.53%
Based on trailing twelve-month data, ENPH shows a free cash flow per share of N/A and a ROIC of 3.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.53% are important context metrics when evaluating ENPH's stock valuation relative to peers.
The intrinsic value of ENPH depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ENPH is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $31.19. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Enphase Energy, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Solar industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ENPH's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Enphase Energy, Inc., this means projecting how much free cash flow the Solar will produce over the next 5-10 years, then discounting those amounts to today's dollars. ENPH's ROIC of 3.6% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ENPH, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
