Current Price
$35.07
Intrinsic Value
$25.53
-37.4% margin of safety
What Is Enphase Energy, Inc.'s Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Enphase Energy, Inc. (ENPH) at $25.53 per share, compared with a market price of $35.07, a margin of safety of -37.4%. The base case assumes 5.2% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $21.38 to $30.26. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Enphase Energy, Inc. (ENPH) Undervalued?
At the current price of $35.07, ENPH trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Integrated System Ecosystem
Enphase offers a comprehensive suite of solar products, including microinverters, batteries, and software. This integrated approach creates higher switching costs for installers and homeowners.
↑Strong Installer Relationships
The company has cultivated deep relationships with a large network of solar installers. This loyalty is built on training, support, and product reliability, making it difficult for competitors to displace Enphase.
↑Brand Reputation for Quality
Enphase has established a reputation for producing high-quality, reliable, and safe solar energy systems. This trust translates into a preference among consumers and installers, even at a premium price.
INVESTMENT RISKS
↓Dependence on Key Suppliers
While Enphase has multiple suppliers, disruptions or price increases from critical component manufacturers could impact production and profitability.
↓Regulatory and Policy Changes
Government incentives, net metering policies, and tariffs related to solar energy can significantly influence demand and Enphase's market position.
↓Execution Risk on New Products
The company's future growth relies on successful development and market adoption of new products, such as its AI-driven solutions. Any delays or failures could hinder growth.
Base case
ENPH base case valuation
Intrinsic Value
$25.53
Margin of safety
-37.4%
Expected annual return
-6.2%
Base case assumptions: 5.2% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ENPH valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Enphase Energy, Inc. respond.
Open DCF Calculator for ENPHCompany Overview
Enphase Energy, Inc., along with its subsidiaries, is dedicated to developing, manufacturing, and distributing home energy solutions for the global solar photovoltaic industry. Their core offering is a semiconductor-based microinverter, designed to convert energy at the individual solar module level. This technology seamlessly integrates with their proprietary networking and software, providing advanced energy monitoring and control capabilities. The company's product portfolio also includes AC battery storage systems, the Envoy communications gateway, the cloud-based Enlighten monitoring service, and various related accessories. Enphase sells its offerings through multiple channels, reaching solar distributors, large installers directly, original equipment manufacturers (OEMs), strategic partners, and individual homeowners, as well as through its legacy product upgrade program and online store. Established in 2006, Enphase Energy, Inc. is headquartered in Fremont, California.
Financial Metrics — ENPH Stock Valuation Data
Revenue/Share (TTM)
$10.09
FCF/Share (TTM)
$0.90
ROIC (TTM)
3.8%
ROE (TTM)
12.3%
P/FCF
38.9x
EV/EBITDA
26.2x
FCF Yield
2.57%
Debt/Equity
0.48x
On a trailing twelve-month basis, ENPH generates free cash flow per share of $0.90 alongside a ROIC of 3.8%, both central inputs for a DCF valuation. Its P/FCF ratio of 38.9x and FCF yield of 2.57% then frame how ENPH is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of ENPH?
Enphase Energy, Inc. currently generates $0.90 in free cash flow per share. At the current price of $35.07, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ENPH undervalued?
ENPH trades at a P/FCF ratio of 38.9x with a free cash flow yield of 2.57%. This P/FCF is in a moderate range. However, whether ENPH is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ENPH stock using DCF?
To perform a DCF valuation on Enphase Energy, Inc.: (1) Start with the trailing free cash flow per share ($0.90) 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 — with a debt-to-equity of 0.48x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ENPH?
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 company will produce over the next 5-10 years, shaped by Solar trends, then discounting those amounts to today's dollars. ENPH's ROIC of 3.8% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect ENPH stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ENPH, with a debt-to-equity ratio of 0.48x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 26.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ENPH PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value ENPH with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.